Cindy Wang

Cindy Wang from China Renaissance asked for a regional breakdown of the 31,500 new funded accounts in Q3 2025. She also inquired about the quarter-over-quarter change in onshore user assets and their overall contribution to total client assets at the end of Q3 2025.

Answer

Chairman and CEO Tianhua Wu stated that new funded accounts in Q3 were approximately 40% from Singapore, 35% from Hong Kong, 20% from Australia/New Zealand, and 5% from the US. He added that onshore investor assets also saw double-digit QoQ growth, but their percentage of total client assets dropped to below 15% due to faster overseas growth.

Cindy Wang of China Renaissance inquired about the reasons for the sequential drop in the effective tax rate to 15% and its sustainability. She also asked about the drivers of the strong growth in other revenue and the progress of the company's cryptocurrency business, including plans for licenses in Hong Kong, Singapore, and the United States.

Answer

CFO John Zeng explained the lower tax rate was due to a shift in profit mix away from the high-tax U.S. subsidiary and securing a more favorable 13.5% rate in Singapore. He confirmed investment banking was a major driver for other revenue growth, alongside increased foreign exchange and wealth management income. A company representative added that UP Fintech is committed to digital assets, partnering with strategic investors to enhance its Web3 products. They noted digital asset trading volume grew 65% QoQ in Hong Kong and that the company holds licenses in 14 U.S. states with an application pending in Singapore.

Cindy Wang of China Renaissance inquired about UP Fintech's Q2 2025 performance trends, including trading volume, client assets, and new accounts, given market volatility. She also asked for the outlook on costs, particularly headcount and customer acquisition costs (CAC).

Answer

Arun Li, Head of Investor Relations, noted a strong start to Q2, with record trading volume in April exceeding $100 billion and client assets reaching a new high. He anticipates fewer new funded accounts than in Q1 but remains confident in meeting the annual target of 150,000. CFO John Zeng added that compensation expenses are expected to grow 10-20% annually, and the average CAC is projected to rise from $150-180 to $250-300 as the company invests more in high-value markets like Hong Kong and brand awareness.

Cindy Wang of China Renaissance asked for details on the $13.2 million loss provision, including the reason for the allowance, the potential for a future write-back, and the risk of recurrence. She also requested a regional breakdown of the strong new funded account growth and the acquisition strategies employed.

Answer

CEO Tianhua Wu explained the impairment was linked to a legacy Hong Kong stock pledging business, which the company had already ceased since 2023. He noted that while a repayment agreement is in place, the full amount was prudently written off. For user growth, Wu detailed that approximately 65% of new clients came from Singapore and Southeast Asia, driven by a 45% QoQ increase in marketing spend and the successful launch of new products like the Tiger Vault debit card.

Cindy Wang inquired about the day-one delinquency rate and 30-day loan collection rate for Q3, whether early risk indicators showed stabilization in October and November, and how the company determines the inflection point of credit risk. She also asked about the acceleration of growth momentum in overseas markets and the main product drivers in Indonesia and the Philippines.

Answer

CFO Jiayuan Xu reported a Q3 day-one delinquency rate of 5% (up 30 basis points QoQ) and a softened 13-day collection rate of 18.8%, noting a further uptake in early October but early signs of stabilization in November. He explained that sustained improvement over two consecutive months would indicate a turning point. CEO Tiezheng Li detailed the international business growth, with transaction volume growing at a CAGR of over 70% from 2020-2024. He highlighted product diversification in Indonesia, including Buy Now Pay Later for offline retail, and in the Philippines, emphasizing e-commerce partnerships and new collaborations like with Smart telecom.

Cindy Wang inquired about the day-one delinquency rate and 30-day loan collection rate in Q3 2025, whether early risk indicators showed stabilization in October and November, and how the inflection point of credit risk is determined. She also asked about the growth momentum in overseas markets and the main product drivers in Indonesia and the Philippines.

Answer

CFO Jiayuan Xu reported a day-one delinquency rate of 5% in Q3 2025 and a 30-day collection rate of 18.8%, noting a stabilization in November after an October peak, and stated that sustained improvement over two consecutive months would indicate a turning point. CEO Tiezheng Li highlighted the rapid growth of the international business, with Indonesia bouncing back and the Philippines maintaining high double-digit growth, driven by diverse products including offline Buy Now Pay Later in Indonesia and e-commerce partnerships (like TikTok and Smart) in the Philippines.

Cindy Wang of China Renaissance inquired about the potential impact of new loan facilitation regulations on FinVolution's China business and whether it would slow loan volume. She also asked about the recent performance of the international business and any changes to the target customer profile.

Answer

Chief Financial Officer Jiayuan Xu explained that the new regulations, effective in October, will likely promote industry consolidation and have a manageable impact on FinVolution due to its focus on high-quality assets. He anticipates a low single-digit quarterly decline in China's transaction volume. For the international segment, Mr. Xu confirmed strong momentum continued into July and August, highlighting a positive regulatory update in Indonesia that maintains the current interest rate cap, providing stability for long-term planning.

Cindy Wang from China Renaissance posed two questions. First, she asked about the main drivers behind the over 200% quarter-over-quarter growth in Qifu Technology's technology solutions loan volume in Q3 and the outlook for this business. Second, Wang inquired about the expected ratio of capital-heavy and capital-light business for new loan volume and loan balance in Q4 2025 and 2026, noting Q3's capital-light share.

Answer

Wu Haisheng, CEO of Qfin Holdings, explained that the tech solution business growth (RMB 5.4 billion loan volume, up 218% QoQ) was driven by ramping up loan volume with existing partners and expanding collaboration across online scenarios, highlighting value in customer acquisition and risk management. He detailed the upgrade to Super Credit AI Agent, including AI Credit Officer's impact on streamlining processes and risk assessment. Alex Xu, CFO of Qfin Holdings, stated that in the short term, the company might lean more towards capital-light business in a higher-risk environment, but the 24% price cap limits IC business. For 2026, he expects the mix to fluctuate around the 50/50 line.

Cindy Wang asked about the main drivers behind the 200%+ quarter-over-quarter growth in Qfin's technology solutions loan volume in Q3 and its outlook. She also inquired about the expected ratio of capital-heavy and capital-light business to new loan volume and loan balance for Q4 2026, given Q3's capital-light figures.

Answer

CEO Wu Haisheng explained that the tech solution business growth (RMB 5.4 billion loan volume, up 218% QoQ) was driven by ramping up loan volume with existing partners and expanding collaboration methods beyond their ecosystems to broader online scenarios. He highlighted strong demand for AI agents, mentioning the upgrade of Focus PRO to Super Credit AI Agent and the positive pilot run of AI Credit Officer with bank partners, indicating huge future upside. CFO Alex Xu addressed the capital-heavy/capital-light mix, stating that in the short term, Qfin might lean more towards capital-light to reduce risk exposure, though the 24% price cap also limits ICE business. He predicted a mix "bouncing around the 50/50 line" for 2026, with timely adjustments based on market conditions, risk levels, and funding sources.

Cindy Wang of China Renaissance inquired about the company's ABS issuance target for the second half of 2025 and the outlook for further reductions in funding costs.

Answer

CEO Haisheng Wu stated that H1 2025 ABS issuance was strong at RMB 14.4 billion, nearly matching the full-year 2024 total, with costs at a record low. He expects the pace to slow in H2 due to tighter market liquidity but anticipates full-year 2025 ABS issuance to grow by over 30%, leading to a meaningful decrease in overall funding costs for 2025 compared to 2024.

Yun-Yin (Cindy) Wang from China Renaissance asked about the reasons for the sequential decline in new users and the increase in customer acquisition cost (CAC) in Q1, and how trade tensions might affect new borrower quality and acquisition strategy.

Answer

An executive explained that the higher CAC was driven by a business mix change, with increased volume from API channels and higher spending on in-feed marketing to attract better quality users. They emphasized a focus on overall efficiency, noting the conversion rate from new credit line users to new borrowers improved significantly to 74%. The company will continue to monitor the macro environment and adjust its acquisition pace and channel mix accordingly.

Cindy Wang inquired about the breakdown of client asset growth between market gains and net asset inflows, seeking the current run rate for net asset inflows and client assets in Q4. She also asked about the customer acquisition cost (CAC) trend in Q3, noting it was higher than Q2 but below full-year guidance, and requested expectations for Q4 CAC.

Answer

CFO Arthur Chen explained that approximately one-third of asset movement came from net client asset inflow and two-thirds from market-to-market fluctuations. He noted that while Q4 market-to-market implications were negative, asset inflow momentum remained robust. For client acquisition, Q3 average CAC was around HKD 2,300, slightly up quarter-over-quarter but within the HKD 2,500-3,000 full-year target, with Q4 acquisition momentum and cost remaining healthy.

Cindy Wang inquired about the breakdown of client asset growth in Q3 2025 between market gains and net asset inflows, the current run rate for net asset inflows and client assets in Q4, and the recent customer acquisition trends and expected customer acquisition cost (CAC) for Q4, given the Q3 CAC was higher than Q2 but still below the full-year guidance.

Answer

CFO Arthur Chen explained that approximately one-third of asset movement in Q3 came from net client asset inflow, with the remaining two-thirds from market-to-market fluctuations. He noted that Q4 quarter-to-date saw negative market-to-market implications but robust asset inflow momentum. The average CAC in Q3 was around HKD 2,300, slightly up sequentially but within the full-year target range of HKD 2,500-3,000, with Q4 acquisition momentum and cost remaining healthy.

Cindy Wang of China Renaissance inquired about the drivers behind the strong net asset inflow in the first half of the year and the strategy to sustain this momentum. She also asked for details on cryptocurrency trading performance, including client numbers, volume, and plans for new products or market launches in the second half.

Answer

CFO Arthur Yu Chen attributed the robust asset inflow to favorable market conditions, an enriched product suite (wealth management, crypto, fixed income), and successful overseas marketing, such as the NY Mets sponsorship. For the second half, he highlighted plans for physical store rollouts and new product offerings. Regarding crypto, Chen noted strong momentum with asset values increasing over 40% quarter-over-quarter and confirmed plans to introduce crypto transfer functionalities and explore new exchange licenses.

Cindy Wang inquired about Futu's trading velocity, volume, and margin financing balance for the second quarter, and asked for details on the new membership program's business model, subscriber numbers, and long-term benefits.

Answer

Daniel Yuan, Head of Strategy & IR, projected a sequential increase in Q2 trading volume and high net asset inflows, while expecting a decrease in new funded accounts from a high Q1 base. CFO Arthur Yu Chen explained the membership program targets high-value wealth management clients and is in its early stages with minimal penetration.