Loan Volume Growth

Q1 2025

no prior guidance

RMB 33.5 billion to RMB 34.5 billion "

no prior guidance

Loan Volume Growth

FY 2025

no prior guidance

RMB 134.4 billion to RMB 138.4 billion, representing 30% growth " "

no prior guidance

Loan Volume Growth

Q1: Noted an 11% decline (RMB 22B). " Q2: Decline of 12% YoY with a sequential increase to RMB 23B. " Q3: Mixed signals with a 4% YoY decline but a 25% sequential increase (RMB 28B). " "

Q4: Reported RMB 32B in loans with a 24% YoY increase and an optimistic forecast of a 30% increase in 2025. "

Improved sentiment and growth focus – The narrative has shifted from mixed performance to clear growth, supported by expanded acquisition channels.

Profitability Translation

Q1: Despite lower loan volumes, profitability improved significantly (net income up 28% YoY). " Q2: Achieved record high net income despite volume decline. " Q3: Delivered record non‐GAAP net income with continued revenue growth. "

Q4: Emphasis on profit growing in line with loan volume; net income more than doubled YoY driven by disciplined underwriting and lower funding costs. " "

Strengthened and consistent focus – The company has consistently maintained profitability despite volume fluctuations, with Q4 showing an even stronger positive outlook.

Credit Quality

Q1: Raised concerns over increasing overdue percentages but noted stabilizing asset quality. " Q2: Improvement in asset quality reported with better delinquency performance. " Q3: Cited further improvements in asset quality and lower delinquency rates. "

Q4: Continued emphasis on strengthening asset quality and effective risk management practices. "

Consistent improvement – The narrative remains positive with continuous enhancements in credit quality, reinforcing effective risk controls.

Delinquency Rates

Q1: Higher delinquency rates noted (31-60 days at 1.61% and 91-180 days at 4.37%). " Q2: Mixed figures with slight improvements compared to the previous quarter. " Q3: Reported continued improvement (31-60 days at 1.02% and 91-180 days at 3.22%). "

Q4: Noted further improvement with rates of 1.17% (31-60 days) and 2.48% (91-108 days) compared to last year. "

Downward trend – Overall sentiment has shifted towards increasingly favorable delinquency metrics, supporting overall asset quality improvement.

Loan Provisions

Q1: Provision increased to RMB 62M from RMB 20M year-over-year. " Q2: Provisions reported at RMB 96M due to cumulative loan volume effects. " Q3: No specific new details provided. "

Q4: No mention of loan provisions, suggesting a reduced focus on this area. "

Diminished focus – The omission in Q4 may indicate that loan provisions are currently less of a concern or are being managed implicitly.

Share Repurchase Programs

Q1: Announced a new repurchase program for up to $20M. " Q2: Launched a $20M program with completed tender offers. " Q3: Detailed repurchase activity including multiple programs and available balances. " " "

Q4: Reported significant repurchase activity (38.4M shares for USD 49M) and signaled increased emphasis on buybacks in 2025. " "

Heightened focus – Consistent emphasis with an expanded scope in Q4, highlighting ongoing commitment to return capital to shareholders.

Dividend Payout Strategy

Q1: No mention of dividend strategy. " Q2: Maintained a semiannual dividend policy with USD 0.17 per ADS. " Q3: Discussed dividends in context of yield alongside share buybacks. " "

Q4: Confirmed a semiannual dividend (USD 0.25 per ADS) while indicating a future shift to prioritize share buybacks given stock undervaluation. " "

Stable yet shifting – Dividend commitments remain steady but with a growing strategic emphasis on buybacks as market conditions evolve.

Funding Costs

Q1–Q3: Little to no focus on funding costs, with no detailed discussion in Q3 and Q2 and only indirect mentions in Q1. "

Q4: Explicitly highlighted a decrease in funding costs by more than 2% YoY, with expectations to remain low in 2025. "

Emerging focus – Q4 introduces a more detailed and positive discussion on funding costs, reflecting improved financial conditions.

Risk Profile Management

Q1: Emphasized proactive adjustments and streamlined risk control to stabilize asset quality. " " Q2: Discussed proactive risk management measures and improved delinquency rates. " " Q3: Less detailed but implied continued monitoring through improved asset quality. "

Q4: Noted effective risk management that contributed to lower credit risk and a stable risk profile for the near term. "

Consistent and reinforcing – The commitment to risk management remains steady, with Q4 reinforcing its critical role in supporting profitability.

Operational Efficiency and Expense Management

Q1: Highlighted strict risk controls and cost reductions, resulting in improved operating income. " " Q2: Focused on cost control with mixed movements in different expense categories. " Q3: Detailed discussion on rising expenses alongside improved operational income, reflecting efficiency improvements despite higher costs. "

Q4: While not explicitly detailed as standalone topics, there is notable mention of AI-powered enhancements (e.g., customer service robots, auto coding tools) that imply a focus on leveraging technology to boost operational efficiency. " "

Technologically enhanced focus – The narrative has evolved to emphasize technology-driven efficiency gains, complementing traditional cost management efforts.

Regulatory Environment and Economic Policies

Q1: No notable discussion. " Q2: No significant commentary provided. " Q3: Characterized as stable with supportive government stimulus measures noted in September 2024. " "

Q4: Expanded discussion highlighting Chinese monetary and fiscal stimulus measures that lowered funding costs and supported borrower demand; also emphasized favorable regulatory guidance from NFRA. "

Increased prominence – Q4 brings a more comprehensive discussion of regulatory and economic policies, suggesting these factors are playing an increasingly positive role.

Market Valuation and Investor Perception

Q1: Largely absent; focus was on operational performance and strategy. " Q2: No specific discussion on valuation. " Q3: Addressed issues of low valuation (trading at just over 1x earnings) and the impact of share buybacks and dividend yields on investor sentiment. " "

Q4: Continued focus on undervaluation despite a 200% stock price appreciation; reiterated commitment to capital returns via share buybacks and highlighted the rare undervalued stock price relative to EPS. "

Sustained concern with nuanced optimism – While undervaluation remains a key theme, Q4 features a more optimistic tone regarding future upside and shareholder return strategies.

Access to New Customer Channels and Enhanced Customer Quality

Q1: Not mentioned. " Q2: Introduced as a positive development enabling access to new channels and the acquisition of higher-quality customers. " Q3: Not specifically discussed. "

Q4: Emphasized as a primary driver for the forecast 30% growth in loan volume for 2025, reinforcing the importance of direct customer reach and partnerships. "

Emerging and affirming – After emerging in Q2, the topic gains strong emphasis in Q4 as a key growth driver with an optimistic tone.

Technical and Execution Challenges in Capital Returns

Q1: Not mentioned. " Q2: No specific details provided. " Q3: Discussed challenges such as low trading volume and currency exchange issues affecting share buybacks. " "

Q4: No discussion of technical or execution challenges, indicating a possible resolution or reduced emphasis of these issues. "

Declining focus – Previously noted challenges in Q3 are no longer a topic in Q4, possibly reflecting improvements or a shift in strategic priorities.

Forward-Looking Guidance and Visibility on Future Performance

Q1: Provided guidance on loan volumes and profitability targets, with moderate visibility on near-term performance. " " Q2: Offered specific volume guidance for Q3 and linked improvements to better delinquency trends. " " Q3: Detailed quarterly and full-year guidance, mentioning monthly targets and a supportive macroeconomic backdrop. " "

Q4: Presented comprehensive forward-looking guidance including a forecast for a 30% increase in loan volume in 2025, strong profitability links, and acknowledgment of limited visibility (one to two quarters) amidst favorable regulatory and economic conditions. " " "

More expansive and optimistic – The company’s outlook has evolved to offer broader and more confident guidance, while also noting short-term visibility constraints.