Navigating Contradictions: Key Insights from Jiayuan Xu's Q2 2025 Earnings Call on Diversification, Overseas Growth, and Shareholder Returns

Financial Performance and International Growth:
- FinVolution reported net revenue of RMB 3.6 billion for Q2 2025, up 13% year-over-year (YoY).
- This growth was driven by a 10% increase in transaction volume in China and a 39% surge in international transaction volume, which now contributes 22% of net revenue.

Risk Management and Regulatory Impact:
- FinVolution maintained a healthy risk profile, with a provision coverage ratio of 543%, despite regulatory uncertainties in the consumer finance sector in China.
- The company is prepared for potential impacts on transaction volumes and risk metrics due to upcoming regulatory changes, with a focus on acquiring and operating high-quality assets.

International Expansion Success:
- The company's international business saw a 39% year-over-year increase in transaction volume, with loan balance rising 50% to RMB 2.1 billion.
- This growth was fueled by an expanding customer base, strategic partnerships with local platforms, and effective AI-powered marketing strategies.

Capital Markets Activity and Shareholder Returns:
- FinVolution completed a USD 150 million convertible bonds offering in June, with a portion used for share repurchases.
- The company has cumulatively returned $813 million to shareholders, representing 35% of its current market cap, with a strategic focus on dividend growth and share buybacks.