FINV

Image source: The Motley Fool. Thursday, Aug. 27, 2026 at 8:30 p.m. ET Head of Capital Markets - Yam Cheng Chief Executive Officer - Tiezheng Li Chief Financial Officer - Jiayuan Xu Operator: Hello, ladies and gentlemen. Thank you for participating in the second quarter 2026 earnings conference call for FinVolution Group. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Yam Cheng, Head of Capital Markets for the company. Yam, please go ahead. Yam Cheng: Hi all. Thank you for joining our call. Welcome to our second quarter 2026 earnings conference call. The company's results were issued to newswire services earlier today and are posted online. You can download the earnings release and sign up for the company's e-mail alerts by visiting the IR section of our website. Mr. Tim Li, our Chief Executive Officer; and Mr. Alexis Xu, our Chief Financial Officer, will start the call with the prepared remarks and conclude with a Q&A section. During this call, we will be referring to several non-GAAP financial measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For information about these non-GAAP measures and reconciliation to GAAP measures, please refer to our earnings press release. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties are included in the company's filings with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Finally, we posted a presentation on our IR website providing details of our results. Before I turn over to our CEO, we are dialing in from multiple locations, so if there is any delay in connection, please bear with us. I will now turn over to our CEO, Tim. Tim, please go ahead. Tiezheng Li: Thanks, Yam, and thanks, everyone, for joining us. Let me start with the big picture. For years, we have pursued one clear strategy: internationalization. In a world this volatile, such strategy matters more than ever. It let us take what we have learned and put it to work in markets that are ready for fintech, and it helps us diversify away from any single market. That strategy served us well this quarter, and it is exactly where we are headed. Overall, the second quarter was a solid one. In China, a stable risk backdrop, together with the preemptive actions we took in early quarters, give us a constructive environment to operate in. Overseas, momentum in Indonesia and Australia more than offset a deliberate temporary pullback in the Philippines. That is our diversification strategy working as designed. Let me turn to the results. Given the results in China in the fourth quarter of last year, the sequential trend is more telling measure. Group volume rose 5% sequentially to RMB 45 billion and the revenue moved [ in step ], up 6% to RMB 3.4 billion. Net profit was RMB 427 million, up 1%. But the figure we are most encouraged by is overseas, RMB 54 million in operating profit, up 17% sequentially. Overseas now account for roughly 27% of group revenue, and that share will keep rising for the rest of the year. Now let me dive into the 2 segments, starting with our Chinese Mainland. At a high level, we booked RMB 41 billion in loan volume, up 6.5% quarter-over-quarter, a healthy continuation of the recovery that began at the beginning of 2026. That said, the industry was rattled by an isolated credit incident, which adversely impacted the risk and funding dynamics. I will walk you through in a bit. Right now, we are watching 3 priorities closely: asset quality, fundings and regulation. First, asset quality. Coming into 2026, we expected a gradual recovery following the regulatory result in the fourth quarter of last year. Two quarters in, that played out as we expected through the first half. Risks continue to ease through the second quarter. C-M2 came down again from 0.68% to 0.56%. So we grew the book selectively, focusing on the high-quality repeat borrowers as we know well. The strategy generated 6% sequential growth in unique borrowers while keeping credit quality firm. Vintage credit cost was steady at roughly 2.7%. The environment has since turned. In July, an isolated credit event led institutional funding partner to reduce funding for loan facilitation. Many smaller platform either exited or sharply cut loan origination. Separately, a regulation campaign around the collection industry has tightened the collection capacity across the industry. Together, this creates a risk headwind for us in the coming quarters. While it is in the early stage, we are staying cautious on the risk of our portfolio. On funding, let me be direct. The same tightening sits behind our funding outlook. Our own funding held up well in the second quarter, but beginning in July, we are seeing the industry as a whole tighten as the institution turn more cautious. For us, that could meaningfully lower our origination volume and some upward pressure on funding costs. Here is how we are managing it. Our balance sheet and liquidity give us room, and our asset quality and compliance record matter more when funding partners get selected. We've already begun allocating liquidity towards our China funding base and will prioritize funding stability over near-term growth until the environment normalizes. On regulation, the new fee disclosure requirements took effect on August 1, and we are complying. The online marketing rules take effect at the end of September, and we are already working with our partners to be ready. Now let's move on to the Overseas segment. Our Overseas segment is performing well. Volume rose 19% year-over-year and revenue reached RMB 930 million, up 18%. More important, these numbers are backed by real demand. Our unique borrowers more than doubled from a year ago to 5.3 million. Over the past 2 years, we have reached several important milestones. We have built a diversified portfolio of markets, where temporary weakness in any one country can be offset by strength in the others. Last year, we absorbed an interest rate cap in Indonesia on the strength of the Philippines. This quarter, we deliberately dialed back origination as the new rate cap took effect in the Philippines. And that gap was filled by structural growth in Indonesia and the progress we keep making in our newest market, Australia. As the country becomes balanced and as we add more profit -- profitable markets, our growth trajectory would be increasingly predictable and certain. Our playbook remains the same, product expansion and customer upgrade. We use broad portfolio of easy-to-use financing products to attract customers to try out and progressively cross sell other credit solutions to build better unit economics over time. In Indonesia, offline buy now, pay later continued to lead the growth. Our partnership in various offline consumption scenarios continue to proliferate. Offline buy now, pay later is now around 25% of the volume comparing to single-digit contribution a year ago. In the Philippines, the rate cap took effect this quarter. We slowed down deliberately to protect quality, the same approach we have taken through past transition. And growth has typically returned once the new pricing settles in. In Australia, we further expanded our offerings to large ticket size, lower interest rate products to attract consumers with strong credit profiles for higher credit limit. While this is still preliminary, we plan to continue to pursue customer upgrade as a core strategy. We also made further investments in building the open banking infrastructure, giving us direct access to bank statement data and a far sharper read on each borrower. Finally, ESG. In our business, trust is everything. In June, we published our eighth annual ESG report. On fraud prevention, we made 60 upgrades to our antifraud system, flagged more than 9,000 suspicious activities each day and blocked over 17,000 fraud attempts. We also launched our own consumer protection system, Golden Sentinel. It systematically integrates early risk warnings, compliant analysts, [indiscernible] and data dashboards to drive consumer protection governance from post-incidence handling towards proactive warning and thus, resolves 74.5% of cases on first contact, with customer satisfaction at 98.5%. With that, let me hand it to Alexis for a closer look at numbers. Jiayuan Xu: Thank you, Tim, and hello, everyone. Let me walk you through our key results for the second quarter, and please refer to our earnings press release for further details. Now let me discuss each of the segments. First, China. Macro in China remains in a gradual recovery model. China's real GDP growth slowed down from 5% in first quarter to 4.3% in the second quarter on the back of subdued household consumer confidence. First, in Q2 Revenue was RMB 2.4 billion, up 8% sequentially, a direct result of recovery in loan volume during the quarter. Take rate stabilized at about 3.2%, in line with the first quarter. On risk, asset quality on new loans held steady at 2.7%. Early risk indicators show signs of improvement on outstanding loans. The day 1 delinquency ticked up slightly from 5.2% to 5.3%, while the 30-day collection rate strengthened from 87% to 89%. Overall, C-M2 improved to 0.56% from 0.68%, below the Q3 2025 level. While this points to our portfolio of improving credit quality, we are vigilant on the risk uptick following various industry events in July. Separately, funding costs rose a further 30 basis points sequentially to 3.7%. Institutional funding supply began to tighten towards the end of the quarter, and we expect further upward pressure on funding costs in the coming quarters. On customer acquisition, we raised our risk appetite for repeated borrowers. Combined with acquisition costs holding at an attractive level, that brought our overall customer acquisition costs down quarter-over-quarter. As a result, China's operating profit grew 4.3% sequentially to RMB 625 million. Turning to the Overseas. Overseas revenue rose 18% year-over-year to RMB 930 million, partially dragged by our deliberate pullback in loan origination in the Philippines. One priority for our Overseas segment is to balance profitability with growth. By its nature, this business recognize customer acquisition costs and credit loss upfront, while revenue is earned over time. Philippines profit is inherently backloaded, and the rapid growth on its own would leave the early years deeply unprofitable. We manage it deliberately against that dynamics, ensuring we deliver profit even as we scale. The second quarter was a case in point, RMB 54 million in operating profit, up 17% quarter-over-quarter and more than double year-over-year. Earlier this year, we guided to USD 13 million of full year EBITDA. Doubling from last year, we remain confident in delivery. During the quarter, we added 2.2 million new borrowers in the quarter, up 29% sequentially. Offline buy now, pay later in Indonesia drove most of the new borrower momentum, a sign that our offline expansion is translating directly into new customers rather than just brand awareness. The Philippines continued to absorb the impact of the industry's new interest rate cap. We preemptively scaled back originations this -- over the past 2 quarters, but the momentum should soon restart. In Australia, unique borrowers grew 22% sequentially, driven by effective online marketing, a wider product range and a cleaner apps experience. Going into the next quarter, we continue to be mindful of the macros, such as oil price, may impose on currency as well as credit quality in market we operate. On a group basis, net revenue reached RMB 3.4 billion, up 6% sequentially on the back of higher loan volume. Operating profit came in at RMB 529 million, which included a one-off intangible asset impairment of RMB 64 million. Excluding that impact, operating profit was up 8% sequentially. Net income was RMB 427 million, up 1% sequentially. We held RMB 6.4 billion in cash and short-term investments and the leverage is set at 2.1x, near historical lows. The balance sheet strength gives us the flexibility to navigate a tighter funding environment in China. On shareholder returns, our capital allocation is clear. We prioritize business growth first and use buybacks as our flexible level, [ sized ] to market conditions, trading volume and the share price. In the second quarter, we repurchased USD 27.4 million of shares, bringing first half 2026 repurchase to USD 66.8 million. Now to our outlook. We are reiterating our full year revenue guidance of RMB 11.5 billion to RMB 12.9 billion based on information currently available. We set that range conservatively at the start of the year given industry volatility. Our first half performance tracked ahead of our internal plan. That gives us a cushion. The other performance we delivered in the first half year helps absorb the softer second half we now expect as funding and credit conditions tighten. Given that near-term pressure, we would expect to land in the lower part of the range unless the operating environment substantially changes. To sum up, China is moving through a transition that we believe will favor players with strong compliance and operational know-how. Overseas is becoming a second growing source of profit. We go into the third quarter clear-eyed about the funding and the regulatory pressure ahead and committed to the same disciplined execution that has carried us this far. Across both capital allocation and operations, we are focused on one goal: lasting compounding returns for our shareholders. Thank you. We will now hand the call to the operator for questions. Operator: [Operator Instructions] The first question will come from the line of Cindy Wang of China Renaissance. Yun-Yin Wang: [Foreign Language] I have 2 questions here. First, following the Juzi platform incident, what business adjustment did the company make to ensure risk control? What is the current funding supply situation? And will the recent exit of small size platform would lead to a resurgence of industry risk? And what are the recent changes in the company's early risk indicators? Second, what is the current interest rate adjustment situation in Philippines? And will they affect the growth rate of overseas new loan volume this year? Jiayuan Xu: Thank you, Cindy. I will take your questions. I think you have 2 questions, and your first question is a very big and multipart question. So I will break it into different pieces. Okay. Let's start with what we are seeing on the funding side. After the Juzi event, the credit and the liquidity issues at the individual platform did trigger some broader volatilities in the funding across the loan facilitation industry. So the first impact is the tightening risk appetite of the financial institutions. The event raised concerns among the financial institutions about the funding flow safety and the compliance of the platform. Since July, a lot of institutions have launched internal self-checks and do some reviews for their partners. Some of them paused the business during the process, took a wait-and-see approach. So that led to a fairly sharp near-term pullback in funding supply across the whole market. I think most of the small- and middle-sized platforms have either exited or pulled back sharply on lending. And we are relatively less impact, but our China volume was down around 50% in July. And looking at August, we believe institutional confidence has started to stabilize. But the funding recovery is still coming back at a slower pace. Yes. And what we have done to adjust our business for the challenge, okay, so first is on transparency. We have worked very closely with our financial institution partners, give them the visibility into our fund flows and the repayment path, kept everything in a very clear and closed loop compliance process. We believe it will help to ease their concerns. And secondly, during this period, we have prioritized the quality over the scale, further refined our customer segmentation, raised the underwriting bar and prioritized the fundings for our high-risk quality customers. And then turn to the funding outlook. I think over the long term, financial institutions will keep reducing their exposure to those small platforms and focus on the big platforms, that they are compliant, well capitalized and have a strong risk track record. That's where we see it. I can show some figures. In the second quarter, we had RMB 6.4 billion in cash and short-term investments. Cash flows stayed solid through July and August. And the latest number is RMB 7.5 billion. And on top of that, we have got roughly RMB 5 billion in highly liquidity assets. I mean those cash, we can recover very quickly in near term. So the aggregated number is RMB 12.5 billion in total. Okay? That gives a real resilience and forms the foundation for our leading position in this industry and our long-term relationships with the founding partners. We think in near term, there will still be some volatility as the institutions still need time to rebuild their risk appetite and work through their process reviews. So maybe in the next 1 or 2 quarters, I think it comes down to 2 things. First, it depends on how fast institutions get through their self-checks and system fix. The pace varies a lot case by case, so industry-wide, the recovery hasn't quite caught up yet. Secondly, I think whether the broader credit environment stays stable and [ PL and SS ] keep existing and assuming there is no new extreme event, so in that cases, I would expect risk appetite and confidence to gradually come back with the self-check's ramp-up. Okay. And last, I will talk about our early risk indicators. This round of funding tightened also overlapped with the regulatory action in the collection industry at the end of July. So collection results got tighter. And the recovery efficiency took a bit of hit, too. That's added some challenges on top. Okay. Actually, we have seen some movement in our early risk indicators. As a result, our latest reading is up around 20% versus the second quarter. Given all of that, we are staying profit focused rather than chasing scale. We are also taking a more conservative posture on risk sharpening, how we are identifying higher-risk borrowers, speeding up model iteration and tighten the acquisition spend. All our goal is at protecting our unit economics. Okay? So that's my answer for your first questions. And your second question is about Philippines. Okay. The Philippines rolled out a new interest rate cap effective from April 1. So heading into that, we took a pretty deliberate cautious approach in the first half. We actually slowed down the originations on purpose to give ourselves room to adjust the business. Yes. short-term volume in the Philippines did take a hit, okay, as we have mentioned before. But based on our experience, navigating similar pricing adjustment in Indonesia before, we believe this kind of recovery typically takes about 2 or 3 quarters. So we expect the Philippines business will return to growth in the third quarter. And after the adjustment, the new regulatory framework sets in and as our mix shifts further toward high-quality borrowers, we have still got room to optimize both credit costs and funding costs and the growth picks back up from there. And to be clear, in the Philippines, I think we are not just cutting prices to comply with the new rules. We are using this as a chance to push deeper structure upgrade across the business. For example, on the risk side, we have raised our underwriting bar and the pullback on the marginal segment where risk and returns were not linear, while growing the share of higher-quality borrowers, the ones with more stable repayment behavior and better repeated borrowing performance. And on the product side, we are continuing to diversify beyond online cash loan product. We have expanded into more scenario-based products like our buy now, pay later product with the local smart shop company and Carousell. That lets us more beyond a single cash loan product into a broader range of consumption and payment use case. So we can match our better quality customers with the right credit line, tenure and the product and there, build the lifetime value through repeat borrowings. Now zooming out to the Overseas business as a whole. The fee adjustment in the Philippines in the first half doesn't change the overall growth trajectory for our overseas markets. And there is really, thanks to our -- the multi-market proof point. The Q2 pullback in the Philippines was largely offset by the strong growth in our Indonesia and Australia market. So heading to the second half, we expect the momentum in Indonesia and Australia to continue. And also, we expect the Philippines to work through this adjustment period to get back to sequential growth. So for the full year, we are very confident to expect the overseas volume to grow at a double-digit rate year-over-year. Operator: The next question now comes from the line of Alex Ye of UBS. Xiaoxiong Ye: [Foreign Language] So I'll translate for my question. First question is about the funding cost. So what has been the latest funding cost in recent months compared to Q2? And what's your expectation for the coming 1 to 2 quarters? Second question is that given funding supply has become a major bottleneck at the moment, so is there any adjustment that the company is going to make with regard to the utilization of your self-capital? So -- and in relate to that, how should we think about the pace of buyback in the coming 1 to 2 quarters? Jiayuan Xu: Okay. Thank you, Alex. Yes. Your first question is about funding. Yes. We are seeing funding costs tick up in the third quarter relatively to the second quarter, up about -- around 30 basis points in July, and we expect the gradual upward trend to continue over the next quarter or 2, so just given the broader funding environment in China right now. Okay. And we believe short-term funding volatility is largely a matter of confidence. So over the long run, we don't see the competitiveness of the quality asset strategy. If anything, it will only get stronger. Your second question is about the capital deployment and the buyback pace. So recently, the funding tightness from that -- the industry event has made a lot of financial institutions more focused on the compliance and the capital strains, and on our side, we are leaning into our own strong balance sheet and ample cash reserves. We have showed the figures before. We are offering a solid safety cushion and credit enhancement in our funding partnerships to work with them to build the institutional confidence and speed up the recovery. Now we are also looking at exploring the possibilities at the capital injections into our licensed business, for example, the micro lending company, as a way to diversify our funding sources and improve the stability. So that's for our China business. And on the other side, even in the short term, there are some pressures in the China market. Our long-term overseas build-out is already paying off. We are moving into a profit release phase. So gradually, we have also noticed a lot of our peers accelerating their own overseas business lately. But for us, that validated 2 things, that we were ahead of our -- the curve on this and the strategy itself was the right one. So with a mature skilled Overseas business already in place, we have got a lot more patience and confidence to navigate the bumps in China. If anything, that's made us even more committed to accelerating investment overseas. For example, the Fundo acquisition in Australia last -- the first quarter last year also gave us valuable experience entering the new markets through M&A. So going forward, replicating the playbook through the capital allocation may be the smart move and can really help us to drive a healthy and faster growth Overseas business. And the last on the buyback pace, yes, as we have mentioned, we will prioritize the steady operations in business first, the steady business in China and the fast growth business in overseas market. And from there, we will keep the flexibility to execute the buyback plan based on the share price and the market and liquidity. But it will not change our long-term direction on shareholder returns. We will remain committed to return the capital to maximize the long-term shareholders' value. Okay. Operator: Our next question will come from the line of [ Yoyo Fan ] from CICC. Unknown Analyst: [Foreign Language] This is [ Yoyo Fan ] from CICC. My question is on Overseas business. We can see that the Overseas business is well on track based on the first half year data. So looking ahead to the second half of this year, what will be the key drivers of our Overseas profit growth? Jiayuan Xu: Okay. Thank you, [ Yoyo ]. Before I get into the specific drivers for the second half, let me give you a bit of context. Looking back at how our Overseas business has developed, I would say has been marked by a real foresight and the proactively strategy from the start. Back in 2018, 8 years ago, where our China business is we're still enjoying strong growth, the group. We have already made global expansion a long-term strategic priority. So over the past 8 years, we have steadily built up our overseas foundation, securing license, establishing the local operations and building out our funding's ecosystem. We proved that the model from 0 to 1 in Indonesia and then replicate the experience in Philippines and the other countries and acquired the Fundo and entering the Australia, upgraded the whole approach into what we now call the strategy, LEGO+. As such, the years of deliberate groundwork and sustained investment, that allowed our overseas business to become what it is today, a mature second profit engine, delivering steady and meaningful profit for the group. Okay. And then let me get into the details in the second half. Looking ahead, we expect our 3 major overseas markets to work together in a very fairly commensurate way. Indonesia contributed the bulk of the incremental growth and the Philippines gradually recover and the Australia continue its rapid expansion. For Indonesia, which is the largest one, it already accounts for more than 50% of both our overseas volume and revenue. Even with the seasonal drag from Ramadan, we still delivered a solid 13% growth versus the second half year 2025 in the first half. So the second half trends to benefit from the traditional peak season. So we would expect some further improvement in growth. We are also continuing to build out offline buy now, pay later products through our motor finance license. And the customer segment tends to be high quality, longer tenure and the larger ticket size, which will help us to keep improving our overall customer mix and finally drive the healthy returns. Okay. That's for the Indonesia. And on the Philippines, in the first half, we made a deliberate choice to tighten up in response to the new interest rate cap, to raise our underwriting standards and cleanup of our customer mix. So after the new price environment stabilized, we would expect the Philippines volume to start recover sequentially in the second half. And as the share of the high-quality customers keep rising, that will continue to bring risk down and support the ongoing improvement in the unit economics. And for Australia, as the new starts in our overseas expansion, it's very high compliance, high-value developed market and the growth has been fast since we consolidated at the end of last year. And in the second quarter, unit borrowers were up 22% quarter-over-quarter. It drove the volume to 70% sequentially. So we would expect Australia to keep going up to double-digit sequential growth in the second half. Given the Australian customer tends to have the larger ticket size and better risk performance overall, we think Australian contribution to overseas profit will keep increasing as the customer base grows and more of our acquisition shifts to our proprietary apps. Okay. So that's for our 3 major overseas market. And yes, summary, okay, our Overseas business is no longer dependent on any single market, instead as build out 3 things working together, and maybe in near future, it will be more countries added in. Broader product diversification, continued customer mix upgrade and our LEGO+-- global platform, so together, we have built a cross-regional growth structure that is really resilient through the cycle. That's what gives us the ability to bear the regulatory shifts in any single market and stay on track towards the long-term goal. We have an ambitious target by 2030. We expect the overseas revenue will reach more than 50% of the total group revenue. Okay. That's all for my answer. Thank you. Operator: Questions now, I would like to turn the call back over to the company for closing. Yam Cheng: Thank you. Thank you once again for joining us today. If you have any further questions, please reach out to the Investor Relations team. Thank you very much. Operator: This conference call, thank you for your participation. You may now disconnect your lines. Thank you. Before you buy stock in FinVolution Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FinVolution Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. 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Interested in PPDAI Group Inc. Sponsored ADR? Here are five stocks we like better. Q2 results improved sequentially: Loan volume rose 5% to RMB45 billion, revenue increased 6% to RMB3.4 billion and net income climbed 1% to RMB427 million. FinVolution maintained its full-year revenue outlook of RMB11.5 billion–RMB12.9 billion but expects results near the lower end. China operations face worsening conditions: Funding costs rose, regulatory actions disrupted collections and China loan volume fell about 50% in July after lenders tightened financing. Management is prioritizing liquidity, profitability and stricter underwriting over near-term growth. International growth is offsetting China and Philippines weakness: Overseas loan volume increased 19% year over year, driven by Indonesia and Australia, while the Philippines was affected by an interest-rate cap. FinVolution aims for overseas operations to generate more than 50% of group revenue by 2030. Chinese Fintech FinVolution: Buy, Sell, or Hold? PPDAI Group (NYSE:FINV), which operates as FinVolution Group, reported sequential growth in loan volume, revenue and net income for the second quarter of 2026, while cautioning that a tightening funding environment and collection-industry regulatory actions in China could weigh on lending volumes and credit conditions in coming quarters. Group loan volume rose 5% sequentially to RMB45 billion, Chief Executive Officer Tim Li said on the company’s earnings call. Revenue increased 6% to RMB3.4 billion, while net income rose 1% sequentially to RMB427 million. The company recorded RMB529 million in operating profit, including a RMB64 million one-time impairment of intangible assets. Excluding that charge, operating profit increased 8% sequentially, Chief Financial Officer Alexis Xu said. → Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch FinVolution reiterated its full-year revenue outlook of RMB11.5 billion to RMB12.9 billion. However, Xu said the company now expects results to land in the lower end of that range unless the operating environment changes substantially, citing softer second-half conditions in China. In mainland China, loan volume reached RMB41 billion, up 6.5% from the prior quarter, as the company continued a recovery that began early in 2026. China revenue rose 8% sequentially to RMB2.4 billion, while the take rate remained about 3.2%. → Palantir's Kool-Aid Moment: The Math Behind Karp's Forecast The company said credit performance improved through the second quarter. C-M2 declined to 0.56% from 0.68%, and vintage credit costs remained near 2.7%. The 30-day collection rate improved to 89% from 87%, though day-one delinquency increased slightly to 5.3% from 5.2%. Li said the company selectively expanded its lending book among higher-quality repeat borrowers, resulting in 6% sequential growth in unique borrowers while maintaining stable credit quality. China operating profit rose 4.3% sequentially to RMB625 million, according to Xu. → Looking Beyond NVIDIA? These 3 AI ETFs Are Beating the Market Conditions shifted in July following what management described as an isolated credit event involving the Jizi platform. Xu said the event prompted many financial institutions to conduct internal reviews of loan-facilitation partners, with some pausing business during those assessments. Smaller and midsize lending platforms either exited the market or sharply reduced originations, he said. FinVolution said its China loan volume was down about 50% in July as industry funding tightened. Management said institutional confidence had begun to stabilize in August, but that the recovery in available funding remained gradual. Funding costs increased 30 basis points sequentially to 3.7% in the second quarter, and Xu said they rose by an additional roughly 30 basis points in July. The company expects funding costs to continue trending upward over the next one to two quarters. Collection-industry regulatory actions at the end of July also constrained collection resources and reduced recovery efficiency, Xu said. The company’s latest early-risk reading was about 20% above the second-quarter level. In response, FinVolution said it is tightening underwriting, refining customer segmentation, accelerating risk-model updates and reducing acquisition spending. Management said it will prioritize funding stability and profitability over near-term origination growth. The company ended the quarter with RMB6.4 billion in cash and short-term investments, which Xu said had risen to RMB7.5 billion in July and August. Combined with about RMB5 billion in highly liquid assets, the company cited roughly RMB12.5 billion in available liquidity. FinVolution’s overseas segment continued to expand, with loan volume rising 19% year over year and revenue increasing 18% to RMB930 million. Unique overseas borrowers more than doubled from a year earlier to 5.3 million. Overseas operating profit totaled RMB154 million, up 17% sequentially and more than double the prior-year period, according to Xu. The company said it remains confident in its previously stated full-year overseas EBITDA target of $13 million, double the prior year’s level. Management said growth in Indonesia and Australia more than offset a deliberate reduction in originations in the Philippines following an interest-rate cap that took effect April 1. The company expects overseas loan volume to grow at a double-digit year-over-year rate for the full year. Indonesia: Offline buy now, pay later products accounted for about 25% of volume, compared with a single-digit share a year earlier. Indonesia represents more than 50% of overseas volume and revenue, Xu said. Philippines: FinVolution reduced originations and tightened underwriting to adapt to the rate cap. Management expects the business to return to sequential growth in the third quarter, with recovery typically taking two to three quarters after pricing adjustments. Australia: Unique borrowers rose 22% sequentially in the second quarter, helping drive loan volume growth of 70% sequentially. The company expanded into larger-ticket, lower-interest-rate products aimed at borrowers with stronger credit profiles. Li said internationalization remains central to FinVolution’s strategy, helping diversify the business beyond any single market. Overseas revenue represented roughly 27% of group revenue in the second quarter, and management expects that proportion to continue increasing during the rest of the year. Xu said FinVolution is considering capital injections into licensed operations, including its micro-lending business, to diversify funding sources and improve funding stability in China. The company also said it intends to continue investing in overseas expansion and may replicate aspects of its Australia market-entry approach, including acquisitions. The company repurchased $27.4 million of shares during the second quarter, bringing first-half repurchases to $66.8 million. Xu said FinVolution will continue to prioritize operating needs and maintain flexibility in repurchases based on share price and market liquidity. Looking toward 2030, management said it aims for overseas operations to account for more than 50% of total group revenue. PPDAI Group Inc operates an online consumer finance marketplace that connects individual and institutional investors with personal and small-business borrowers. Through its digital platform, the company facilitates unsecured consumer loans, auto refinancing loans and small-business financing by leveraging proprietary credit assessment tools and big data analytics. Investors gain exposure to a diversified portfolio of retail credit assets, while borrowers benefit from streamlined application processes and competitive financing rates. At the core of PPDAI's offering is a multi-layered risk management framework that combines automated credit scoring, manual underwriting oversight and third-party data verification. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "PPDAI Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: Group revenue reached RMB3.4 billion, up 6% sequentially. Net Profit: Net income was RMB427 million, up 1% sequentially. Operating Profit: RMB529 million, including a one-off intangible asset impairment of RMB64 million; excluding that impact, operating profit was up 8% sequentially. Group Loan Volume: RMB45 billion, up 5% sequentially. China Revenue: RMB2.4 billion, up 8% sequentially. China Loan Volume: RMB41 billion, up 6.5% quarter-over-quarter. China Operating Profit: RMB625 million, up 4.3% sequentially. Overseas Revenue: RMB930 million, up 18% year over year. Overseas Operating Profit: RMB54 million, up 17% sequentially and more than double year over year. Overseas Loan Volume: Up 19% year over year. Overseas Unique Borrowers: 5.3 million, more than doubled from a year ago. New Overseas Borrowers: 2.2 million added in the quarter, up 29% sequentially. Take Rate (China): Stabilized at approximately 3.2%. Funding Cost (China): Improved by 30 basis points to 3.7%. Vintage Credit Cost: Steady at roughly 2.7%. Day 1 Delinquency: Ticked up slightly from 5.2% to 5.3%. 30-Day Collection Rate: Strengthened from 87% to 89%. C2M2: Improved to 0.56% from 0.68%. Cash and Short-Term Investments: RMB6.4 billion. Leverage: 2.1 times, near historical lows. Share Repurchases: USD27.4 million in Q2, bringing first half 2026 repurchases to USD66.8 million. Full Year Revenue Guidance: Reiterated at RMB11.5 billion to RMB12.9 billion, expected to land in the lower part of the range. Warning! GuruFocus has detected 3 Warning Sign with FINV. Is FINV fairly valued? Test your thesis with our free DCF calculator. Release Date: August 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Overseas segment delivered strong performance with revenue up 18% year-over-year and operating profit up 17% sequentially, driven by growth in Indonesia and Australia. Group loan volume rose 5% sequentially to RMB45 billion, with revenue up 6% to RMB3.4 billion, reflecting a solid quarter overall. Asset quality in China improved, with C2M2 down from 0.68% to 0.56% and 30-day collection rate strengthening from 87% to 89%. Overseas unique borrowers more than doubled year-over-year to 5.3 million, with new borrower additions up 29% sequentially. Strong balance sheet with RMB6.4 billion in cash and short-term investments, leverage at 2.1 times near historical lows, and continued share repurchases of USD27.4 million in Q2. Reiterated full-year revenue guidance of RMB11.5 billion to RMB12.9 billion, with first-half performance tracking ahead of internal plans. China funding environment tightened significantly in July due to an isolated credit event, leading to a 50% decline in China volume and upward pressure on funding costs. Regulatory campaign on the collection industry has tightened collection capacity, negatively impacting recovery efficiency and early risk indicators, which rose around 20% versus Q2. Funding costs increased by 30 basis points in Q3 and are expected to continue rising over the next one to two quarters. Philippines business experienced a deliberate pullback in originations due to a new interest rate cap, with volume taking a hit and recovery expected only in Q3. One-off intangible asset impairment of RMB64 million impacted operating profit in Q2. Management expects to land in the lower part of the full-year revenue guidance range due to softer second-half conditions. Q: Following the GG pattern incident, what business adjustments did the company make to ensure risk control? What is the current funding supply situation, and will the recent exit of small platforms lead to a resurgence of industry risk? What are the recent changes in the company's early risk indicators?A: (Jiayuan Xu, CFO) The credit event triggered broader volatility in funding across the industry, leading financial institutions to tighten their appetite and launch internal self-checks. This caused a sharp near-term pullback in funding supply, with many small and mid-sized platforms exiting or sharply cutting lending. Our China volume was down around 50% in July, though institutional confidence has started to stabilize in August. We have prioritized transparency with funding partners, refined customer segmentation, and raised underwriting standards. Our early risk indicators have moved up around 20% versus Q2 due to tighter collection resources. We are taking a more conservative posture, focusing on protecting unit economics over scale. Q: What has been the latest funding cost in recent months compared to Q2, and what is your expectation for the coming one to two quarters? Given funding supply has become a major bottleneck, are there any adjustments regarding the utilization of self-capital and the pace of buybacks?A: (Jiayuan Xu, CFO) Funding costs in Q3 are up around 30 basis points compared to Q2, and we expect a gradual upward trend to continue over the next quarter or two. We are leveraging our strong balance sheetwith RMB6.4 billion in cash and short-term investments, plus RMB5 billion in highly liquid assetsto provide credit enhancement and build institutional confidence. We are also exploring capital injections into our licensed micro-lending business to diversify funding sources. On buybacks, we prioritize business operations first but remain committed to shareholder returns, executing buybacks flexibly based on share price and market conditions. Q: What is the current interest rate adjustment situation in the Philippines, and will it affect the growth rate of overseas new loan volume this year?A: (Jiayuan Xu, CFO) The Philippines rolled out a new interest rate cap effective April 1. We deliberately slowed originations in the first half to adjust the business. Based on our experience navigating similar pricing adjustments in Indonesia, we expect recovery to take about two to three quarters, with the Philippines business returning to growth in Q3. We are using this as an opportunity for structural upgradesraising underwriting bars, shifting toward higher-quality borrowers, and diversifying beyond online cash loans into buy now, pay later products. For the full year, we remain confident in double-digit overseas volume growth year-over-year, driven by Indonesia and Australia offsetting the Philippines' temporary pullback. Q: Looking ahead to the second half of this year, what will be the key drivers of overseas profit growth?A: (Jiayuan Xu, CFO) Our three major overseas markets will work together in a complementary way. Indonesia, which accounts for more than 50% of overseas volume and revenue, will contribute the bulk of incremental growth, benefiting from the traditional peak season and continued expansion of offline buy now, pay later products. The Philippines will gradually recover as the new price environment stabilizes, with improving unit economics from a higher-quality customer mix. Australia, our newest market, will continue rapid expansion with double-digit sequential growth, as its customers tend to have larger ticket sizes and better credit performance. We maintain our ambitious target of overseas revenue reaching more than 50% of total group revenue by 2030. Q: How is the company managing the funding environment in China, and what is the outlook for the full year?A: (Jiayuan Xu, CFO) We are reiterating our full-year revenue guidance of RMB11.5 billion to RMB12.9 billion. Our first-half performance tracked ahead of internal plans, providing a cushion to absorb the softer second half we now expect as funding and credit conditions tighten. We expect to land in the lower part of the range unless the operating environment substantially changes. Our balance sheet strengthwith leverage at 2.1 times, near historical lowsgives us flexibility to navigate the tighter funding environment. We are prioritizing funding stability over near-term growth until the environment normalizes. Q: Can you provide more details on the company's asset quality and risk indicators in China during the second quarter?A: (Jiayuan Xu, CFO) In Q2, China's new loan vintage credit cost held steady at approximately 2.7%. Early risk indicators showed signs of improvement on outstanding loansday 1 delinquency ticked up slightly from 5.2% to 5.3%, while the 30-day collection rate strengthened from 87% to 89%. Overall, C2M2 improved to 0.56% from 0.68%, below the Q3 2025 level. We grew the book selectively, focusing on high-quality repeat borrowers, which generated 6% sequential growth in unique borrowers while keeping credit quality firm. However, we are staying cautious on risk uptake following various industry events in July. Q: What is the current status of the overseas segment's performance, particularly regarding profitability and growth?A: (Jiayuan Xu, CFO) Overseas revenue rose 18% year-over-year to RMB930 million, partially dragged by our deliberate pullback in the Philippines. Operating profit reached RMB54 million, up 17% quarter-over-quarter and more than double year-over-year. We added 2.2 million new borrowers in the quarter, up 29% sequentially, driven mostly by offline buy now, pay later operations in Indonesia. We remain confident in delivering our full-year EBITDA guidance of USD13 million, doubling from last year. The overseas business is no longer dependent on any single market, with Indonesia, the Philippines, and Australia working together to create a resilient growth structure. Q: How is the company navigating the regulatory changes, including the new fee disclosure requirements and online marketing rules?A: (Tiezheng Li, CEO) The new fee disclosure requirements took effect on August 1, and we are fully compliant. The online marketing rules take effect at the end of September, and we are already working with our partners to be ready. We are watching three priorities closely: asset quality, funding, and regulation. Our compliance record and asset quality make us a preferred partner when funding institutions become more selective. We believe the current industry transition will favor players with strong compliance and operational know-how. Q: Can you elaborate on the company's strategy for customer acquisition and product expansion in overseas markets?A: (Tiezheng Li, CEO) Our playbook remains the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SHANGHAI, Aug. 27, 2026 (GLOBE NEWSWIRE) -- FinVolution Group (“FinVolution” or the “Company”) (NYSE: FINV), a leading fintech platform across China and overseas markets, today announced its unaudited financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights Chinese Mainland Market Cumulative registered users reached 192.8 million as of June 30, 2026, an increase of 6.6% compared with June 30, 2025. Cumulative borrowers reached 30.1 million as of June 30, 2026, an increase of 7.9% compared with June 30, 2025. Number of unique borrowers6 for the second quarter of 2026 was 1.8 million, a decrease of 18.2% compared with the same period of 2025. Transaction volume2 was RMB41.0 billion for the second quarter of 2026, a decrease of 19.3% compared with the same period of 2025. Transaction volume facilitated for repeat individual borrowers7 for the second quarter of 2026 was RMB34.8 billion, a decrease of 20.5% compared with the same period of 2025. Outstanding loan balance4 was RMB65.4 billion as of June 30, 2026, a decrease of 13.3% compared with June 30, 2025. Average loan size was RMB10,742 for the second quarter of 2026, compared with RMB10,056 for the same period of 2025. Average loan tenure was 8.5 months for the second quarter of 2026, compared with 8.3 months for the same period of 2025. 90 day+ delinquency ratio8 was 2.10% as of June 30, 2026. Net revenue9 was RMB2,396.7 million (US$353.2 million) for the second quarter of 2026, compared with RMB2,781.3 million for the same period of 2025. U.S. GAAP operating profit10 was RMB624.8 million (US$92.1 million) for the second quarter of 2026, compared with RMB913.6 million for the same period of 2025. Non-GAAP adjusted EBITDA11, which excludes depreciation and amortization and share-based compensation expenses from operating profit, was RMB641.9 million (US$94.6 million) for the second quarter of 2026, compared with RMB930.6 million for the same period of 2025. Overseas Markets Cumulative registered users reached 61.4 million as of June 30, 2026, an increase of 43.5% compared with June 30, 2025. Cumulative borrowers reached 15.6 million as of June 30, 2026, an increase of 79.3% compared with June 30, 2025. Number of unique borrowers12 for the second quarter of 2026 was 5.3 million, an increase of 130.4% compared with the same period of 2025. Number of new borrowers13 for the second quarter of 2026 was 2.2 million, an increase of 100.0% compared with the same period of 2025. Transaction volume3 reached RMB3.8 billion for the second quarter of 2026, an increase of 18.8% compared with the same period of 2025. Outstanding loan balance5 reached RMB2.5 billion as of June 30, 2026, an increase of 19.0% compared with June 30, 2025. Net revenue14 was RMB930.3 million (US$137.1 million) for the second quarter of 2026, an increase of 18.0% compared with the same period of 2025, representing 27.3% of total revenue for the second quarter of 2026. U.S. GAAP operating profit10 was RMB53.6 million (US$7.9 million) for the second quarter of 2026, compared with RMB25.6 million for the same period of 2025. Non-GAAP adjusted EBITDA11, which excludes depreciation and amortization and share-based compensation expenses from operating profit, was RMB55.3 million (US$8.1 million) for the second quarter of 2026, compared with RMB26.6 million for the same period of 2025. Group Financial Highlights Net revenue was RMB3,403.2 million (US$501.6 million) for the second quarter of 2026, compared with RMB3,578.0 million for the same period of 2025. Net profit was RMB426.8 million (US$62.9 million) for the second quarter of 2026, compared with RMB751.3 million for the same period of 2025. U.S. GAAP operating profit was RMB529.2 million (US$78.0 million) for the second quarter of 2026, compared with RMB815.5 million for the same period of 2025. Non-GAAP adjusted operating profit15, which excludes share-based compensation expenses before tax, was RMB572.1 million (US$84.3 million) for the second quarter of 2026, compared with RMB854.8 million for the same period of 2025. Diluted net profit per American depositary share (“ADS”) was RMB1.80 (US$0.26) and diluted net profit per share was RMB0.36 (US$0.05) for the second quarter of 2026, compared with RMB2.82 and RMB0.56 for the same period of 2025, respectively. Non-GAAP diluted net profit per ADS was RMB1.97 (US$0.29) and non-GAAP diluted net profit per share was RMB0.39 (US$0.06) for the second quarter of 2026, compared with RMB2.97 and RMB0.59 for the same period of 2025, respectively. Each ADS of the Company represents five Class A ordinary shares of the Company. _________________________1 Represents the total transaction volume facilitated in the Chinese Mainland and overseas markets on the Company’s platform during the period presented.2 Represents our transaction volume facilitated in the Chinese Mainland during the period presented. During the second quarter, RMB14.4 billion was facilitated under the capital-light model, for which the Company does not bear principal risk.3 Represents our transaction volume facilitated in Indonesia, the Philippines and Australia during the period presented.4 Outstanding loan balance as of any date refers to the balance of outstanding loans in the Chinese Mainland market excluding loans delinquent for more than 180 days from such date. As of June 30, 2026, RMB33.4 billion was facilitated under the capital-light model, for which the Company does not bear principal risk.5 Outstanding loan balance as of any date refers to the balance of outstanding loans in Indonesia, the Philippines and Australia excluding loans delinquent for more than 30 days from such date.6 Represents the total number of borrowers in the Chinese Mainland who successfully borrowed on the Company’s platform during the period presented.7 Represents the transaction volume facilitated for borrowers who had historically completed a transaction on the Company’s platform in the Chinese Mainland during the period presented.8 “90 day+ delinquency ratio” refers to the outstanding principal balance of loans, excluding loans facilitated under the capital-light model, that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of loans, excluding loans facilitated under the capital-light model on the Company’s platform as of a specific date. Loans that originated outside the Chinese Mainland are not included in the calculation.9 Represents revenue from the Chinese Mainland. Prior period segment results from the Chinese Mainland have been recast to conform to the current period presentation. Please refer to the “Selected Segment Information” tables at the end of this release for a breakdown by segment for the periods presented.10 Please refer to the “Selected Segment Information” tables at the end of this release for reconciliation between Operating Segment Profit/(Loss) and GAAP operating profit.11 Please refer to the “Selected Segment Information” tables at the end of this release for reconciliation between GAAP operating profit and Non-GAAP adjusted EBITDA.12 Represents the total number of borrowers in Indonesia, the Philippines and Australia who successfully borrowed on the Company’s platforms during the period presented.13 Represents the total number of new borrowers in Indonesia, the Philippines and Australia whose transactions were facilitated on the Company’s platforms during the period presented.14 Represents revenue from overseas markets outside the Chinese Mainland, namely Indonesia, the Philippines, and Australia. Prior period segment results from overseas markets have been recast to conform to the current period presentation. Please refer to “Selected Segment Information” for a breakdown by segment for the periods presented.15 Please refer to “UNAUDITED Reconciliation of GAAP and Non-GAAP Results” for reconciliation between GAAP and Non-GAAP adjusted operating profit.16 The Company has reclassified certain items within its consolidated balance sheets for the first quarter of 2026, including amounts between Loans receivable and Accounts receivable. These balance sheet reclassifications also resulted in corresponding changes in the presentation of certain items in the consolidated statements of cash flows under the indirect method. The impact of these reclassifications has been reflected in the consolidated statements of cash flows for the six months ended June 30, 2026. Mr. Tiezheng Li, Vice Chairman and Chief Executive Officer of FinVolution, commented, "Our second quarter results reflect a growing recovery following the risk mitigation actions we took in the second half of last year, with transaction volume, net revenue, and net profit all up sequentially. Both our Chinese Mainland and Overseas segments delivered resilient performances against an evolving regulatory and macro backdrop across several of our markets, reinforcing the value of our two-engine model. "Asset quality in the Chinese Mainland segment remained solid, supported by the healthier borrower mix we captured during this year's industry consolidation. Meanwhile, the Overseas segment continued to gain traction under our 'Local Excellence, Global Outlook+' strategy. Our unique borrower base more than doubled to 5.3 million, driving continued overall profitability across our international footprint, underscoring the growing earnings power of our diversified platform. "As we enter the third quarter, we are navigating industry headwinds as institutional funding in China tightens at the moment coupled with an evolving risk environment. We intend to stay disciplined on origination rather than chase high-risk volume. Our dual-engine profitability, technology edge and healthy, low-leverage balance sheet give us the flexibility to manage this period while continuing to build long-term value for customers and shareholders," concluded Mr. Li. Mr. Jiayuan Xu, Chief Financial Officer of FinVolution, continued, "Total net revenues were RMB3.4 billion for the second quarter, up 6% sequentially, and net profit was RMB426.8 million, up 1% sequentially. The Chinese Mainland segment contributed RMB2.4 billion in revenue, up 8% sequentially. Overseas segment revenue was RMB930.3 million, up 18% year over year. Overseas operating profit more than doubled to RMB53.6 million, demonstrating sustained profitability across our international footprint. “Our balance sheet remains robust, with RMB6.4 billion in cash and short-term investments, while our leverage ratio stands at 2.1x, around historic lows. We repurchased US$27.4 million in shares during the quarter, bringing our first-half 2026 total to US$66.8 million. Despite anticipated industry headwinds in the third quarter, we are maintaining our full-year revenue outlook of RMB11.5 billion to RMB12.9 billion. We remain committed to disciplined execution and to delivering sustainable, long-term value for our shareholders," concluded Mr. Xu. Second Quarter 2026 Financial Results Net revenue for the second quarter of 2026 was RMB3,403.2 million (US$501.6 million), compared with RMB3,578.0 million for the same period of 2025. This decrease was primarily due to decreases in loan facilitation service fees, post-facilitation service fees and guarantee income, partially offset by increases in net interest income. Loan facilitation service fees were RMB1,313.8 million (US$193.6 million) for the second quarter of 2026, compared with RMB1,515.3 million for the same period of 2025. The decrease was primarily due to decreases in transaction volume in the Chinese Mainland market, partially offset by the increase in transaction volume in overseas markets. Post-facilitation service fees were RMB386.0 million (US$56.9 million) for the second quarter of 2026, compared with RMB425.6 million for the same period of 2025. This decrease was primarily due to the rolling impact of deferred transaction fees. Guarantee income was RMB904.5 million (US$133.3 million) for the second quarter of 2026, compared with RMB1,046.6 million for the same period of 2025. This decrease was primarily due to the decrease in risk-bearing loans in the Chinese Mainland market, as well as the rolling impact of deferred guarantee income. The fair value of quality assurance commitment upon loan origination is released as guarantee income systematically over the term of the loans subject to quality assurance commitment. Net interest income was RMB474.3 million (US$69.9 million) for the second quarter of 2026, compared with RMB272.1 million for the same period of 2025. This increase mainly resulted from the increase in the average outstanding loan balances of on-balance sheet loans in both the Chinese Mainland and overseas markets, partially offset by the decrease in interest yield in the Chinese Mainland market. Other revenue was RMB324.6 million (US$47.8 million) for the second quarter of 2026, compared with RMB318.3 million for the same period of 2025. This increase was primarily due to the increase in the contributions from other revenue streams, including other value-added services. Origination, servicing expenses and other costs of revenue were RMB732.9 million (US$108.0 million) for the second quarter of 2026, compared with RMB674.5 million for the same period of 2025. This increase was primarily driven by the increase in employee expenditures in both the Chinese Mainland and overseas markets, partially offset by the decrease in loan collection expenses in the Chinese Mainland market. Sales and marketing expenses were RMB480.9 million (US$70.9 million) for the second quarter of 2026, compared with RMB606.4 million for the same period of 2025. This decrease was primarily due to improved efficiency and decreased investment in marketing activities in the Chinese Mainland market. Research and development expenses were RMB118.9 million (US$17.5 million) for the second quarter of 2026, compared with RMB129.0 million for the same period of 2025. This decrease was primarily due to efficiency improvements in technology development. General and administrative expenses were RMB106.3 million (US$15.7 million) for the second quarter of 2026, compared with RMB110.2 million for the same period of 2025. This decrease was primarily due to a decrease in professional services fees. Provision for accounts receivable and contract assets was RMB97.9 million (US$14.4 million) for the second quarter of 2026, compared with RMB106.3 million for the same period of 2025. The decrease was primarily due to decreased transaction volume of off-balance sheet loans in the Chinese Mainland. Provision for loans receivable was RMB164.4 million (US$24.2 million) for the second quarter of 2026, compared with RMB98.4 million for the same period of 2025. This increase was primarily due to the increase in the outstanding loan balance of on-balance sheet loans in the Chinese Mainland and overseas markets. Credit losses for quality assurance commitment were RMB1,108.8 million (US$163.4 million) for the second quarter of 2026, compared with RMB987.1 million for the same period of 2025. The increase was primarily due to the increase in risk-bearing loans in the overseas markets. Impairment of goodwill and intangible assets was RMB63.8 million (US$9.4 million) for the second quarter of 2026, compared with RMB50.4 million for the same period of 2025. The impairment of intangible assets in 2026 was primarily due to an impairment of micro-lending licenses related to a certain micro-lending company acquired by the Group in 2017, following a performance review during the quarter. Operating profit was RMB529.2 million (US$78.0 million) for the second quarter of 2026, compared with RMB815.5 million for the same period of 2025. Non-GAAP adjusted operating profit, which excludes share-based compensation expenses before tax, was RMB572.1 million (US$84.3 million) for the second quarter of 2026, compared with RMB854.8 million for the same period of 2025. Other income was RMB33.9 million (US$5.0 million) for the second quarter of 2026, compared with RMB115.9 million for the same period of 2025. The decrease was mainly due to an increase in foreign exchange losses and a decrease in government subsidies. Income tax expense was RMB116.4 million (US$17.1 million) for the second quarter of 2026, compared with RMB178.7 million for the same period of 2025. This decrease was mainly due to the decrease in pre-tax profit. Net profit was RMB426.8 million (US$62.9 million) for the second quarter of 2026, compared with RMB751.3 million for the same period of 2025. Net profit attributable to ordinary shareholders of the Company was RMB441.6 million (US$65.1 million) for the second quarter of 2026, compared with RMB747.0 million for the same period of 2025. Diluted net profit per ADS was RMB1.80 (US$0.26) and diluted net profit per share was RMB0.36 (US$0.05) for the second quarter of 2026, compared with RMB2.82 and RMB0.56 for the same period of 2025, respectively. Non-GAAP diluted net profit per ADS was RMB1.97 (US$0.29) and non-GAAP diluted net profit per share was RMB0.39 (US$0.06) for the second quarter of 2026, compared with RMB2.97 and RMB0.59 for the same period of 2025, respectively. Each ADS represents five Class A ordinary shares of the Company. As of June 30, 2026, the Company had cash and cash equivalents of RMB3,259.4 million (US$480.4 million) and short-term investments, mainly in wealth management products and term deposits, of RMB3,162.0 million (US$466.0 million). The following chart shows the historical cumulative 30-day plus past due delinquency rates by loan origination vintage for loan products facilitated through the Company’s platform in the Chinese Mainland as of June 30, 2026. Loans facilitated under the capital-light model, for which the Company does not bear principal risk, are excluded from the chart. Shares Repurchase Update For the second quarter of 2026, the Company deployed approximately US$27.4 million to repurchase its own Class A ordinary shares in the form of ADSs. As of June 30, 2026, in combination with the Company’s historical and existing share repurchase programs, the Company had cumulatively repurchased its own Class A ordinary shares in the form of ADSs with a total aggregate value of approximately US$544.1 million since 2018. Business Outlook Looking ahead to the third quarter, we anticipate a considerable contraction in transaction volume in China, reflecting industry headwinds as institutional funding to the industry tightens at the moment. Despite this near-term impact, underpinned by the strength of our two-engine model and disciplined execution, we reiterate the Company’s full-year 2026 total revenue guidance to be in the range of approximately RMB11.5 billion to RMB12.9 billion. The above forecast is based on the current market conditions and reflects the Company’s current preliminary views and expectations on market and operational conditions and the regulatory and operating environment, as well as customers’ and institutional partners’ demands, all of which are subject to change. Conference Call The Company’s management will host an earnings conference call at 8:30 PM U.S. Eastern Time on August 27, 2026 (8:30 AM Beijing/Hong Kong Time on August 28, 2026). Participants should complete online registration using the link provided below at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Participant Online Registration: https://register-conf.media-server.com/register/BI0f0012327500446398832920fa161c5b Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.finvgroup.com. About FinVolution Group FinVolution Group is a leading fintech platform with strong brand recognition across China and overseas markets, connecting borrowers of the young generation with financial institutions. Established in 2007, the Company is a pioneer in China's online consumer finance industry and has developed innovative technologies and accumulated in-depth experience in the core areas of credit risk assessment, fraud detection, big data and artificial intelligence. The Company's platform, empowered by proprietary cutting-edge technologies, features a highly automated loan transaction process, which enables a superior user experience. As of June 30, 2026, the Company had 254.2 million cumulative registered users across China and overseas markets. For more information, please visit https://ir.finvgroup.com Use of Non-GAAP Financial Measures We use non-GAAP adjusted operating profit, non-GAAP operating margin, non-GAAP adjusted EBITDA, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. We believe that these non-GAAP financial measures help identify underlying trends in our business by excluding the impact of share-based compensation expenses and expected discretionary measures. We believe that non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Non-GAAP adjusted operating profit, non-GAAP operating margin, non-GAAP adjusted EBITDA, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tool, and when assessing our operating performance, cash flows or our liquidity, investors should not consider it in isolation, or as a substitute for net income, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information on this non-GAAP financial measure, please see the table captioned “Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the rate in effect as of June 30, 2026 as certified for customs purposes by the Federal Reserve Bank of New York. Safe Harbor Statement This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company’s ability to attract and retain borrowers and investors on its marketplace, its ability to increase volume of loans facilitated through the Company’s marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, laws, regulations and governmental policies relating to the online consumer finance industry in China, general economic conditions in China, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the NYSE, including its ability to cure any non-compliance with the NYSE’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and FinVolution does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. For investor and media inquiries, please contact: In China:FinVolution GroupHead of Capital MarketsYam ChengTel: +86 (21) 8030-3200 Ext. 8601E-mail: [email protected] Piacente Financial Communications Jenny CaiTel: +86 (10) 6508-0677E-mail: [email protected] In the United States:Piacente Financial Communications Brandi PiacenteTel: +1-212-481-2050E-mail: [email protected] Notes:(1): “Overseas Markets” includes Indonesia, the Philippines and Australia.(2): “Others” includes a combination of multiple business activities that each does not meet the quantitative thresholds to qualify as reportable segments.(3): The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.(4): “Operating Expenses” includes Origination, servicing expenses and other costs of revenue, Sales and marketing expenses, General and administrative expenses, Research and development expenses, Credit losses for quality assurance commitment, Provision for loans receivable and Provision for accounts receivable and contract assets.(5): Unallocated expenses are mainly related to share-based compensation, impairment of goodwill of prior acquisitions, and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. Note:“Non-GAAP Adjusted EBITDA” represents operating profit (loss) plus (a) depreciation and amortization expenses and (b) share-based compensation expenses. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cfab4379-0d6d-4261-a793-ffb1dbcfa6c2

This article first appeared on GuruFocus. Transaction Volume: RMB42.6 billion, broadly steady with last quarter. Group Net Revenue: RMB3.2 billion, up 6% sequentially. Operating Profit: Increased by 13% sequentially. Net Profit: RMB421 million, up 1% sequentially. Overseas Revenue: RMB949 million, up 35% year over year. Overseas Operating Profit: RMB46 million, up 88% year over year. China Net Revenue: RMB2.2 billion, up 7% sequentially. Take Rate: Increased from 3% to 3.2%. Vintage Delinquency Rate: Eased from 3% to 2.7%. Day 1 Delinquency Rate: Improved from 5.5% to 5.2%. 30-Day Collection Rate: Increased from 85.9% to 86.8%. M2 Default Rate: Declined from 0.77% to 0.68%. Overseas Adjusted EBITDA: RMB47.5 million, up 87% year over year. Dividend Per ADS: USD0.306, reflecting a 10.5% increase year over year. Share Repurchase: USD54 million deployed as of end of April. Revenue Guidance for 2026: RMB11.5 billion to RMB12.9 billion. Warning! GuruFocus has detected 4 Warning Sign with FINV. Is FINV fairly valued? Test your thesis with our free DCF calculator. Release Date: May 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FinVolution Group (NYSE:FINV) reported a 6% sequential increase in net revenue, reaching RMB3.2 billion. The Overseas business segment contributed 30% of group revenue, with a 35% year-over-year increase in revenue. Operating profit improved by 13% sequentially, demonstrating enhanced operational efficiency. The company has successfully expanded its customer base, adding approximately 0.6 million new borrowers in China, a 7% sequential increase. FinVolution Group (NYSE:FINV) has maintained a strong focus on technology, with over 120 active AI initiatives enhancing operational efficiency. The company faces ongoing regulatory uncertainties in China, which could impact future operations. Foreign exchange fluctuations negatively affected net profit, which only increased by 1% sequentially. The first quarter experienced typical seasonal softness, with transaction volumes holding steady rather than growing. Despite improvements, the Chinese market remains in a recovery phase, with risk management still a key focus. The company anticipates higher compliance costs due to tighter marketing regulations for financial products. Q: Can you provide an outlook on the company's buyback strategy and its pace for the coming quarters? A: Jiayuan Xu, CFO: We have been actively executing buybacks, with $39 million in the first quarter and an additional $15 million by the end of April, totaling $54 million this year. Our Board has approved a new $150 million program lasting two years. Our goal is to maximize shareholder return through business expansion and share repurchase, balancing based on liquidity and price. Q: How will the new regulatory document on online marketing of financial products impact your operations? A: Tiezheng Li, CEO: The regulation aims to protect consumers and ensure only licensed players offer financial products. It will increase compliance costs and require adjustments in marketing and user traffic flow. However, we see it as an opportunity to raise standards and believe it will be a net positive in the medium to long term. Q: Has domestic risk performance improved in April and May, and will transaction volume in China increase in the second quarter? A: Jiayuan Xu, CFO: Risk performance has continued to improve, with day one delinquency falling below 5%. We are selectively raising our risk appetite, offering more credit to high-quality borrowers, and expanding our customer pool. We aim to sustain first-quarter growth momentum into the second quarter while balancing volume, risk, and profitability. Q: What are the key drivers for sustainable growth in the Overseas market, and what is the outlook? A: Tiezheng Li, CEO: Our Overseas business has grown significantly, with a 69% CAGR in transaction volume from 2020 to 2025. Key drivers include a data-driven tech platform, institutional funding, and high-quality customer segments. We are confident in continued growth in Indonesia, the Philippines, and Australia, aiming to become a global example of a technology-driven financial platform. Q: What considerations led to the segment disclosure, and can you share some operating indicators for overseas markets? A: Jiayuan Xu, CFO: The segment disclosure reflects the maturity and profitability of our Overseas business. We won't break down APR, funding cost, or risk by market due to differences, but compliance is a priority. We aim to progressively improve risk metrics and have expanded funding partners, optimizing costs. The disclosure provides transparency into our global growth strategy. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Monday, May 25, 2026 at 8:30 p.m. ET Chief Executive Officer — Tiezheng Li Chief Financial Officer — Jiayuan Xu Tiezheng Li, Tim, our CEO, and Mr. Jiayuan Xu, Alexis, our CFO, will start the call with the prepared remarks. And conclude with a Q&A section. During this call, we will be referring to several non GAAP financial measures to review and assess our operating performance. These non GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For information about these non GAAP measures and reconciliation to GAAP please refer to our earnings press release. Before we continue, please note that today's discussion will contain forward looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 2000. Forward looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties are included in the company's filing with the U.S. SEC. The company does not assume any obligation to update any forward looking statements except as required under applicable law. Finally, we posted a slide presentation on our IR website providing further details of our results for this quarter. I will now hand over to our CEO, Tim. Tim, please go ahead. Tiezheng Li: Thank you, Yam. Hello, everyone. When we closed out 2025, we were stepping into this year with clarity, not certainty. 1 quarter in, the clarity is beginning to show. In the trajectory of our business. And in the early results of disciplinary choices we made last year, The macro backdrop has its challenges, yet we delivered a firm first quarter Risk is recovering in China, Overseas business continue to scale with its own strength. And across the platform, years of technology investment are compounding into operating efficiency. Despite the typical seasonal softness in the first quarter, transaction volume held broadly steady at RMB 42.6 billion, roughly in line with last quarter our group net revenue reached RMB 3.2 billion, up 6% sequentially Operating profit was up 13% sequentially, Net profit came in at RMB 421 million, up 1%. Reflecting the impact of foreign exchange fluctuation. Overseas markets again deliver 30% of group revenue this quarter. This is no longer only a diversification story. It has matured into a second profitable engine. To give investors a clearer view of this business, For the first time, we are disclosing our overseas business as a separate reportable segment. In the first quarter, overseas revenue reached RMB 949 million. up 35% year over year. Operating profit reached RMB 46 million up 88% year on year. This is a reflection of both the scale we have built and the earnings power that now stands on its own. Now let me walk you through our 2 segments. Let's start with our mature market. Chinese Mainland. The first quarter in China was, in a word, patience. We are seeing early signs of a recovery in progress. The Chinese New Year holiday always makes the first quarter a seasonally softer period. Yet transaction volume held up at RMB 38.5 billion roughly flat sequentially. On risk, we are seeing gradual improvements. The actions we took in the second half of last year are working. And credit risk is finding its way back to a healthier baseline, Vintage delinquency eased by 30 basis points Day-1 delinquency ratio also improved while 30 day collection rates ticked up. This improving environment has given us the operating headroom to reengage with growth. Cautiously, not aggressively. As the industry consolidated, some players pulled back, we selectively acquired more high quality customers at compelling cost. Conversion improved. Acquisition costs came down. And we added roughly 600 thousand new borrowers in China this quarter, up 7% sequentially. In the near term, we will continue to closely observe the evolving regulatory landscape. There is still uncertainty ahead. Our approach is to stay aligned with the rules manage risk carefully, and capture opportunities as they emerge. Now I will walk through our overseas business. Our overseas market segment is a regional platform that learns, compounds, and transfers. Under our LEGO+ framework, the capability we are building in 1 market are deliberately designed to flow into the next. That means risk infrastructure product architecture, customer strategy, and funding relationships, a lot of these can be leveraged and replicated This quarter is a demonstration of that idea in practice. The first quarter is traditionally a low season for our overseas markets as well. Across the region, transaction volume was RMB 4.1 billion. Broadly flat sequentially. Indonesia moved through Ramadan in The Philippines. We deliberately moderated origination ahead of the new interest rate regime. Taking effect in the second quarter. A mild decision. Consistent with our playbook. Year over year. The direction is clear. Loan volume up 35%, Loan balance up 38%. Unique borrowers more than doubled to 2.45 million. Our strategy is unfolding on the road map we have set. We are firmly executing the initiative we laid out from day 1. Expanding new customer acquisition channels, migrating the platform onto our proprietary risk infrastructure, deploying credit models, and the decisioning rules tailored for the Australia consumers. Early results are there, sharper risk detection, tighter borrower segmentation, stronger portfolio economic What will make Australia work is the same combination that has served us before. Cross market experience layered onto deep local knowledge. Technology and AI are no longer a supporting capability for us. it is how we run the business. From AI agents to workflow automation. We are proactively deploying nearly a 120 active initiatives across the business. And more than 50% are embedded directly in frontline operations. For example, our engineering teams are building proprietary AI native infrastructure to support new product launches. Across our current and future markets. In some of our overseas business, the results are already tangible AI collection agents are not only the default touch point, for pre due reminders. They are also handling 50% of early stage collections at a recovery efficiency level in line with our historical benchmarks. We believe this is a durable, compounding competitive moat, and we are just starting getting started. Community, our long standing community engagement programs continue to make an impact this quarter. Our maker business support program further expanded its reach this quarter. Opening it eligibility to retired athletes who run their own business in China. Since the launch, over 140 small business owners have benefited from this initiative and upgraded their business with our help on operational and funding support. In The Philippines, our local platform partnered with multi local institutions to combat fintech related cybercrime reinforcing our commitment to building a safer digital financial ecosystem. Together, these initiatives reflect the depths of our local roots. And the consistency our commitment to responsible growth. To close, the first quarter gave us the early shape of the year, A recovery in China amid regulatory fog. Our overseas business is standing on its own with growth and profit. A technology advantage that is compounding, Against an uncertain macro, we move with the same posture we spoke of last quarter. Clarity, not certainty. Patience, not haste. We remain focused on growth that last and on creating durable value for consumers and our stakeholders. I will now turn the call over to Alexis. Thank you, Tim. This quarter marks a meaningful evolution in how we report. Jiayuan Xu: For the first time, we are presenting our overseas operations as a separate segment. The reason is simple. Our overseas operation has grown into an engine with its own scale, profitability, and the trajectory. Reported alongside our China operations, the 2 tell a cleaner story. China is the foundation of cash flow and the stability. Overseas is the engine of growth. 2 engines distinct but aligned. The overseas segment consists of the Indonesia, The Philippines, and Australia. Together, these 3 markets have reached a scale, growth, and profitability where segment reporting gives investors a much clearer view of how they will drive upside going forward. We are also introducing adjusted EBITDA for each segment. This metric aligns with how global peers report their financial services, business, and helps investors see the underlying profitability of each engine. Transparency builds trust. By separating the 2 engines. We make it easier for investors to value each segment on its own metrics and unlock the true value of the platform we have built. Now let me discuss each of the segment. China. The macro backdrop was broadly stable, GDP growth of 5%, consumption sentiment is holding its ground. Our China business continues to walk through the reset and began in the second half of 2020. Loan origination volume was largely flat quarter on quarter. Given Q1 seasonality, this is the resilient outcome. Net revenue came in at RMB 2.2 billion, up 7% sequentially. Take rate rose from 3% to 3.2% supported by better risk performance. On risk, the picture is consistent across indicators. In the first quarter, vintage delinquency eased from 3% to 2.7%. Day 1 delinquency improved from 5.5% to 5.2% The 30 day collection rate ticked up from 85.9% to 86.8%. As a result, M2 flow-through rate declined from 0.77% to 0.68%. On the funding side, we continue to maintain stable partnerships with a broad base of financial institutions which kept the funding cost stable during the quarter. This healthy risk environment allows us to selectively broaden our credit appetite. Targeting has sharpened. Conversion has improved New borrowers rose 7% sequentially. Even when we actually reduced sales and the marketing spend in China. Overseas segment. Overseas revenue was up 35% year over year. At expanding margins, adjusted EBITDA was RMB 47.5 million, up 87% year over year. More encouragingly, all 3 markets contributed to this profitability. The deeper picture is in how we deepen our integration into local ecosystems. We are embedding our financial services into the daily life and commerce of each market. This plays out across 3 consistent themes. First, customer upgrading. Through targeted product development. Across all markets, we are systematically shifting our portfolio toward better quality borrowers. This is not a collection of 1 off products. it is a consistent push toward a higher-quality portfolio composition. In Indonesia, offline buy now pay later remains the primary growth engine despite a seasonally slow period. Both transaction volume and the loan balance grew 5% sequentially. Customer quality improved and the take rate held steady. Even as headline NIM eased modestly to 15.1%. Unique borrowers reached 3.2 million nearly 5x the level of the same period last year. Second, regulatory preparedness as our core capability. Our regulator playbook is being applied again in The Philippines. We tightened loan origination ahead of the new pricing regulation and the early read on risk indicators suggest the caution is paying off. We have navigated a pricing transition in Indonesia and China before, and we are approaching 1 with the same posture and the same quiet confidence. Third, our proprietary risk infrastructure. We have honed over years in China and Southeast Asia, is being gradually deployed in Australia. Credit trends there have moved lower for last quarter's seasonal peak. A validation of the portability of our infrastructure. With a renewed credit model, we still achieved sequential growth in transaction volume despite seasonal softness in the first quarter. Finally, our funding ecosystem continues to expand. We have recently added a prominent international bank to our funding partnerships in The Philippines. We are encouraged by the shared mission of our partners to support the exciting growth of the digital credit industry in the country. On a group basis, net revenue for the quarter reached RMB 3.2 billion, marking a 6% increase sequentially driven by an improved take rate. Operating profit improved by 13% quarter on quarter to RMB 547 million offset by impact of FX fluctuation. Net income reached RMB 421 million, up 1% sequentially. Our shareholder return since 2018 we have continuously returned value to our shareholders through share repurchase and dividends. Recently, our board of directors approved our eighth annual dividend in the amount of US$0.306 per ADS. Reflecting a DPS increase of 10.5% year over year. This dividend was distributed on 05/07/2026, bringing our total dividend distributions to shareholders for fiscal year 2020 to US$74.5 million As of the end of April, we have deployed US$154 million towards share repurchase. Reflecting our conviction in our business and the commitment to our shareholders. Outlook. For full year 2026, we reiterate our revenue guidance in the range of RMB 11.0 billion to RMB 12.9 billion, We are on track to allow our 2013 ambition: 50% of group revenue from overseas markets. To conclude, China continues to provide a resilient foundation and the steadily finding its footing. Overseas is scaling profitably alongside it. The combination gives us the stability we need today and growth we are building for tomorrow. We step a quarter deeper into the year with a confidence this is quieter but firmer. In the resilience of our model, in the discipline of our execution, and in the partnerships that carry us forward. Thank you. Now back to the operator for questions. Operator: Thank you, management. We will now begin the question and answer session to ask a question, please press star 1 and wait for your name to be announced. For the benefit of all participants on today's call, you wish to ask your questions to management in Chinese, we ask that you please kindly repeat your question in English. 1 moment for the first question. First question comes from the line of Xiaoxiong Ye from UBS. Please go ahead. Analyst (Alex Yeh): So I will translate for my question. First 1, it is on buyback. So we are glad to see a company has maintained its pace of buyback in Q1 similar to previous quarter. So can you give us some color in terms of the outlook and including the pace for your buyback in the coming quarters? Second question on the regulatory outlook. So we have seen several new documents, regulatory document coming in past several months, including the latest document, which is so called the management rules on the online marketing or financial products. Could you share with us what could what impact could this regulation document brings to your day to day operations, and how would the company react to it to mitigate the impact? Jiayuan Xu: Okay. Thanks, guys. I will take your first question, and the team will take your second question. And your first question is about the buyback. Yeah. On buyback execution side, as you have seen, we have been really a very pretty active pace since the fourth quarter last year. We did around $14 million in the fourth quarter. And the momentum has carried into 2026. In the first quarter, we executed another $39 million and by the end of April, we have added another $15 million. So the total amount this year is about $54 million. And the remaining capacity and our current program is at about $20 million. With that as the backdrop, our board recently approved a new US$150 million program and also as for 2 years. it is quite similar to the 2 programs we did in 2023 and 2025. And on the capital allocation, our goal is always to maximize the shareholder return. The return accretion could come from business expansion, especially from the overseas business. And it could also come from the share repurchase at the dislocated price. So we will make sure we have enough firepower to support the business expansion and then deploy the buybacks in a more flexible ways based on the liquidity and at the price we trade. Would be dynamically balanced. Okay. Tiezheng Li: Hi, Alex. As you mentioned, the online marketing of financial products we think this regulation is natural continuation of a long running trend. The core ideas, I think, are I think, are protecting consumers ensuring only licensed players offer financial products, and keeping a clean line between tech and finance. And all of these are already well-established. Right now, I think it is still early to determine the full impact The industry is working through the details on execution And, generally, we see 3 broad areas where the industry will adapt First, marketing rules are getting tighter Things like low barrier to entry. And instant disbursement and the zero cost are out. The days of flashy are borderline misleading advertisements are fading. For the industry, that means higher compliance cost And some players, we think it may need to make some adjustment to their processes. Our approach has always focused on responsible lending, and the long term brand building. We see this as an opportunity to raise our standards even further. And second on user traffic flow from a platform to lenders. The rules add some friction. It requires third party platform to refer users directly to the financial institution's own platform. A lot of details still need to be hammered out on implementation. So it is too early to say for sure but we are working with financial institutions and the Internet platforms. To restructure some of the workflow under this renewed framework. There will certainly be some adjustments to the process. We are in close communication and third, unbeaten boundaries. The regulation reinforced that core financial decisions. Such as credit approval and the risk assessment, must rest with the licensed financial institutions. This has always been our model. We provide the technology and data tools Our partners make the final calls. And overall, this regulation raises the bar for the entire industry There will be adjustments near term. Near term. But a company, like Finvolution, as a company with strong compliance and technology infrastructure, We see it as a net positive over the medium to long term and Thanks, Alex. Operator: Thank you for the questions. Moment for the next question. Our next question comes from the line of Cindy Wang of China Renaissance. Please go ahead. Analyst (Cindy Wang): and funding costs. Now Thanks for taking my call. I have 2 questions. First, could you let us know whether domestic risk performance in April and May continue to improve from first quarter? And then if credit risk improves, will transaction volume in China in the second quarter would increase. And second, we noticed that the company has made segment disclosure this time. Could you please share the consideration behind the segment disclosure? And also, could you please introduce some operating indicators for overseas market, including, like, APR, funding costs, and default rate. And then what percentage of the group's EBITDA is expected to contribute from overseas market by 2030? Thank you. Jiayuan Xu: Okay. Thanks, Cindy. I will take your questions. Your first question is about the domestic business. Yeah. When we look at the risk of performance in the second quarter, the improving trend is continued. Yeah. Asset quality has continued to get better. And by the end of April, our day 1 delinquency had already fallen below 5%, Back to where we were in July and August of last year. The sustained improvement in the asset quality is really a reflection of the risk management we have been building across the full credit life cycle. On the on the front end, customer acquisition and the preapproval, we have been actively moving up the credit quality curve. Offering higher limits and a better pricing to those high quality customers. And on the technology side, we have been leveraging the large language model to refine the risk analysis. Fraud detection, and intelligent post loan collections, which has meaningfully lifted both the business efficiencies and the asset quality. As the asset quality stabilize, we have selectively raised our appetite in the second quarter. We are now running a diversified approach backed by the AI models. For those high quality existing borrowers, we are now offering more credit limit at a controlled pace. And we also selectively offering to a wider group of customers. Of reasonable credit quality to expand our potential customer pool. So we are making progress on sustaining the first quarter growth momentum into the second quarter. And we will keep a close eye on the macro environment. And our early risk indicators. Stay focused on the high quality growth and continue to keep the balance between volume, risk, and profitability. Okay? And then your next question is about the overseas business. I think it is the multipart question. So I will break it into 3 pieces. Yeah. First is the about the overseas operating metrics. Yeah. We will not break out our APR, funding costs, or release by market because each is very different. From interest rate to borrower profile. But I will give you some high level guidance for reference. For API, compliance is always our first priority. We strictly follow the local pricing rules. At the same time, moving toward high quality customers will give us the flexibility to offer different prices. Take the buy now, pay later product as an example. It help us reach more prime customers. And for the funding cost, more institutions recognize our asset quality. And our funding partners grew from 5 in 2024 to 18 today, which is continuously optimizing our funding cost. And for the delinquency rate, we upgrade customer quality and advance our risk capabilities The risk metrics are improving across all markets. We continue to aim to progressively bring this down going forward. Okay? And the second part is about the EBITDA contribution. Okay. For 2030 overseas EBITDA, I think it is still too early to guide on that. Because it depends on too many variables. The contribution from our Chinese business, the accounting rules impact, the pace of the overseas business. But for 2026, we have a very clear target. Operator: Excuse me. This is the operator. The speaker is experiencing some technical difficulties. Please continue to stand by. The conference will resume shortly. Gentlemen, these speaker is experiencing some technical difficulties. Please continue to stand by. Excuse me. This is the operator. Please continue, from the second part of the answer. Thank you. Jiayuan Xu: Hi, Jasmine. Can you hear us now? Please continue. Okay. Yeah. But if you look back over the past few years, you will see very careful road map. We clarify our strategy and then execute it, deliver the results, and the report them. So second disclosure is a major milestones in that ongoing narrative. When we look back at our international journey, it goes like this. Step 1, prove and replicate the operating model We first proved the viability and the profitability of our business model in Indonesia. This was our first 0 to 1 breakthrough in overseas market, and then we replicate the success to The Philippines. And Step 2, we set a long term goal and deliver the steadily. And as our overseas business took share, we formulated a group strategy to guide operations and the growth our local excellence, global outlook, all LEGO+ strategy, We also clearly laid out the goal of reaching 50% overseas revenue by 2015. We are now already at 30% today. Steadily on track. And the Step 3, a full strategic upgrade to LEGO+ As we expanded into developed market like Australia, We have made a fundamental upgrade to what we call LEGO+. We moved from being a collection of local wings to an integrated platform with compounding platform level advantages. So under this framework, regional experience, product structures, risk capabilities, and the funding networks all validated in the market. Can be systematically used and then migrated to new markets. That has greatly accelerated and de-risked the new market entry. And the next step, the formal segment disclosure Now we truly run a business that is both high-growth and profitable on its own. that is the right time to provide separate disclosure for better understanding of the value in our business. And this segment disclosure is a natural link in our overseas story. It ties together what we have done and where we are headed. And it is the success of our LEGO+ strategy to date and it provides the transparent window into the high-quality global growth we are building for the future. In the coming years, you will see that our overseas engine is not only fast, but also increasingly profitable. With unit economics that are continuously improving. Okay. Thank you, Cindy. Operator: Thank you, Cindy, for the questions. 1 moment for the next question. Our next question comes from the line of Yujie Jing from CICC. Please go ahead. Yujie Jing: Thanks for taking my question. I am from CICC. I have a question regarding overseas market expansion. Now that our overseas business has achieved profitability, what will be the key drivers for its sustained growth? Could you also share your outlook for this business? Thank you. Tiezheng Li: Thanks, Yujie. Everyone, it is a good question. As I previously mentioned, our overseas business continues to deliver strong and resilient growth And over the past 5 years, from 2020 to 2025, Overseas transaction volume grew at a 69% CAGR the first quarter of this year, despite the seasonally slow period. We still delivered solid results. And our revenue grew 35% year over year with EBITDA up 87% And overseas business is now the group's second largest growth engine. The code driver behind this growth is a dual fly wheel loop. We build as a data driven type platform. With over 56 million registered users, our growing data pool sharpens our risk models. And the high quality assets consistently attract more institutional funding. More capital at better cost allows us to serve broader and higher quality customer segments. Across Indonesia, The Philippines, and Australia. We will graduate from the early investment phase. are now profitable. And for Indonesia market, after fee adjustments in the past years, growth has resumed. The first quarter transaction volume grew over 30% year over year. And our approach is to proactively pursue higher quality customers. And continue to gain traction with our offline buy now pay later product it is a direct result of that strategy. In the first quarter, offline buy now pay later volume doubled from last year. And The Philippines, we proactively adjusted our lending pace in the first quarter And ahead of the new interest rules taking effect in the second quarter this year. Even so, transaction volumes still grew on double digit year over year. We also broadened our funding sources with 1 new international bank a clear recognition of our asset quality, And for the Australian market, we are systematically deploying our fintech expertise and risk management capabilities automated systems and funding capacity from the group. In the first quarter, transaction volume grew 25% year over year, with more local data and ongoing model improvements, We are confident Australia will continue to grow in both top line and profitability. And looking ahead, as our business scales, the flywheel loop, would accelerate. Our long term vision is to become global example of technology driven inclusive financial platform. Operating on multiple fronts globally, comes with challenges. But with our mature tech model and operational agility, we are very confident about the journey ahead. Operator: Thank you for the questions. As there are no further questions now, I would like to turn the call back over to the company for closing remarks. Yam Cheng: Thank you, Jasmine. Thank you once again for joining us today. If you have any further questions, please feel free to contact our IR team. Thank you so much. Operator: That does conclude today's conference call. You may now disconnect your lines. Thank you. Before you buy stock in FinVolution Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FinVolution Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. FinVolution (FINV) Q1 2026 Earnings Transcript was originally published by The Motley Fool