FinVolution (FINV) Q1 2026 Earnings Transcript

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DATE

Monday, May 25, 2026 at 8:30 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Tiezheng Li
• Chief Financial Officer — Jiayuan Xu

TAKEAWAYS

• Group Net Revenue -- RMB 3.2 billion, up 6% sequentially, driven by improved take rates and stable transaction volumes despite seasonality.
• Operating Profit -- RMB 547 million, increasing 13% compared to the prior quarter, offset by foreign exchange fluctuation impacts.
• Net Profit -- RMB 421 million, up 1% sequentially, reflecting continued cost discipline and FX dynamics.
• Transaction Volume -- Total transaction volume reached RMB 42.6 billion, broadly flat compared to last quarter, with Mainland China contributing RMB 38.5 billion and overseas RMB 4.1 billion.
• Overseas Revenue -- RMB 949 million, representing 30% of group revenue and showing 35% year-over-year growth.
• Overseas Operating Profit -- RMB 46 million, up 88% year over year, underscoring improved profitability in this segment.
• Segment Reporting Change -- For the first time, the company reported overseas operations as a separate segment, enabling clearer investor visibility.
• Take Rate (China) -- Increased to 3.2% from 3.0% sequentially, backed by better risk performance.
• China Risk Metrics -- Vintage delinquency rate improved to 2.7% from 3.0%, day-1 delinquency to 5.2% from 5.5%, and 30-day collection recovery improved to 86.8% from 85.9%.
• China New Borrowers -- Added approximately 600,000 new borrowers, a 7% sequential increase, with lower acquisition cost and improved conversion.
• Shareholder Returns -- Total dividend distributed for fiscal 2020 was US$74.5 million; recent quarterly dividend was US$0.306 per ADS, up 10.5% year over year.
• Share Repurchase -- Q1 buybacks totaled US$39 million, with aggregate 2026 year-to-date buybacks at US$54 million; board approved a new US$150 million, two-year repurchase program.
• Outlook -- Full-year 2026 revenue guidance maintained at RMB 11.0 billion to RMB 12.9 billion.
• Overseas Unique Borrowers -- Reported over 2.45 million unique borrowers, more than double the prior year, indicating accelerating user growth.
• Funding Partners -- Overseas funding partners rose from 5 in 2024 to 18, supporting continued funding cost optimization.
• Indonesia (Overseas Segment) -- Buy now, pay later transaction volume and loan balance each grew 5% sequentially, unique borrowers reached 3.2 million, nearly 5x the previous year.
• AI and Technology Deployment -- Nearly 120 active initiatives underway in automation and AI, with over 50% embedded directly in frontline operations.
• Dividend Policy Consistency -- Eighth consecutive annual dividend approved, reflecting an ongoing commitment to shareholder returns.

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RISKS

• Management cited regulatory uncertainty in China as an ongoing concern: CEO Tiezheng Li said, "There is still uncertainty ahead. Our approach is to stay aligned with the rules manage risk carefully, and capture opportunities as they emerge."
• New rules governing online financial product marketing could create higher compliance costs and require adjustments: Tiezheng Li stated, "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."
• Transition-related disruptions may add near-term friction, as Tiezheng Li explained, "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."

SUMMARY

FinVolution Group (NYSE:FINV) delivered sequential net revenue and operating profit growth, with stable transaction volume despite first-quarter seasonality. The company introduced new segment reporting, providing detailed financial insight into its overseas operations for the first time. Management confirmed that technology initiatives such as AI adoption and risk model improvement are measurably enhancing both portfolio economics and operating efficiency, positioning the group for ongoing diversification and expansion.

• Operating trends in China are supported by improved asset quality, with risk metrics further strengthening into April as day-1 delinquency fell below 5%.
• Overseas segment growth is underpinned by substantial increases in both unique borrowers and institutional funding partnerships, fostering accelerating scale.
• The latest annual dividend and increased share repurchase capacity signal sustained shareholder capital returns amid ongoing internal capital discipline.
• Regulatory changes in China are expected to raise industry standards and compliance costs, but management asserts the company is well positioned due to its established risk and technology infrastructure.
• Regional diversification is reinforced by specific growth in Indonesia and Australia, affirming the viability and scalability of the group’s LEGO+ platform strategy.

INDUSTRY GLOSSARY

• LEGO+ framework: FinVolution Group's proprietary strategy enabling cross-market transfer of technology, risk infrastructure, and product architecture to quickly scale and de-risk new geographic expansions.
• Day-1 delinquency: The proportion of loans overdue on the first day after their due date, a direct indicator of initial credit quality.
• Buy now, pay later (BNPL): Consumer finance product allowing users to purchase goods and pay over time, prevalent in FinVolution’s Indonesian operations.

Full Conference Call Transcript

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.

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