On November 19th, Beijing time, finvolution, a leading financial technology group in china (NYSE: FINV), announced its unaudited financial report for the third quarter (Q3) of 2024. The report shows that the company's operational fundamentals continue to improve, and the diversified business layout has achieved new results.
In the third quarter, finvolution achieved revenue of 3.276 billion yuan (RMB, the same below), a year-on-year increase of 2.5%; net income was 0.624 billion yuan, an increase of 8.6% compared to the previous year. In terms of operational indicators, the transaction volume facilitated in the quarter was nearly 52.2 billion yuan, a year-on-year increase of 1.8%; the balance of loans was 68.1 billion yuan, an increase of 3.3% compared to the previous year. By the end of the third quarter, the company had served a total of 32.6 million users in both domestic and international markets.
Finvolution's chief financial officer, Xu Jiayuan, said: "This quarter, multiple business indicators of finvolution maintained growth, and the company continues to enhance shareholder returns. In the first three quarters of this year, finvolution invested a total of 81.1 million US dollars in share repurchase, a year-on-year increase of 23%, reflecting our strong confidence in business development and cash flow prospects."
Strategic layout deepened, healthy growth of domestic and international business.
Recently, our country has launched a series of strong incremental policies to promote the role of consumer credit in enhancing and upgrading domestic consumption, boosting confidence in the domestic consumer market. Finvolution responds to policy guidance, continuously expanding domestic market consumer service scenarios through innovative digital financial capabilities, and is committed to serving the high-quality development of the real economy.
In this context, finvolution has maintained steady growth in the domestic market. In the first three quarters of this year, finvolution's domestic transaction amount reached 142 billion yuan, up 4% year-on-year, and other important operational indicators also continued to show growth. Meanwhile, through continuous upgrades to the risk control system and advancing the customer group upward strategy, risk indicators declined in the third quarter, and the proportion of high-quality customers remained industry-leading.
In the third quarter, finvolution strengthened its services for small and micro businesses, continuously expanding the service scenarios for small and micro business operations and enhancing the ability for innovative products in multiple scenarios. This quarter facilitated a transaction amount of 15.4 billion yuan, a year-on-year increase of 25%, with its share of the domestic market's transaction amounts rising to 31%. In addition, the company has enhanced the refinement of small and micro services through a series of regular public welfare actions. Since the beginning of this year, finvolution's small and micro public welfare project "Good Shop" has provided customized assistance to 70 socially responsible small shops.
In the third quarter, finvolution's international business experienced strong growth, with revenue accounting for nearly 20%, and new trading users exceeding the domestic market for two consecutive quarters. The international business has made commendable progress in diversified operations and institutional collaboration: finvolution obtained the "multi-finance license" regulated by the Indonesian Financial Services Authority (OJK) in Indonesia, demonstrating local regulators' confidence in the company's business development in the country. At the same time, the company's international platform continues to expand collaborations with several well-known overseas financial institutions and internet plus-related platforms.
Deeply cultivating technology, innovating capabilities have received international recognition repeatedly.
Finvolution continues to deepen its focus on anti-fraud and risk control technology. Based on cutting-edge technologies such as graph algorithm technology, multi-angle visual technology, voiceprint identification technology, and text embedding mining technology, multiple robust and innovative solutions have been proposed for anti-fraud across the entire credit technology chain. In the third quarter, finvolution received authoritative recognition for its strength in anti-fraud and risk control, being selected for the industry's first AI security industry map. This map was published by the International Cloud Security Alliance (CSA) Greater China region, a global industry organization in the field of cybersecurity.
Additionally, at the 2024 International Joint Conference on Artificial Intelligence (IJCAI), one of the global top AI conferences, finvolution's technical representatives presented the latest research results to the international AI academic community. A paper published by the company's employees on image recognition was included in the conference proceedings, and an academic report was presented on-site. The ninth "Finvolution Cup" Global AI Algorithm Competition, as part of the IJCAI 2024 competition unit, also provided winning teams with opportunities to interact with top algorithm talents from around the world at the conference.
