Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| Achieving growth in both metrics amid such a soft consumer environment is a testament to our business resilience, as well as our outstanding technology innovation and operational excellence |
| By leveraging our peerless technologies and operational advantages, we are confident to replicate our domestic and international success in new markets, unlocking value and making the company a world-class fintech enterprise, while consistently returning value to our shareholders |
| We are gaining substantial momentum as we focus on advancing our international initiatives, preparing technological innovation, expanding our healthy consumer base, and optimizing our product profile |
| Our strong balance sheet and liquidity position continued to enhance shareholders' confidence, while providing us with optimal flexibility to execute our strategy |
| Driven by strong execution of our local focus, global outlook strategy, net revenues for full year 2023 increased to RMB 12.5 billion, up 13% year-over-year, while net income increased to RMB 2.38 billion, up 5% year-over-year |
| In 2023, we advanced towards that goal with continuous strong execution of our local focus, global outlook strategy |
| Adapting to the unique situations in different markets, I'm thrilled to report that we delivered exceptional progress on all fronts |
| Throughout the year, we maintained our robust momentum with the progressive expansion in China, while pursuing much faster growth internationally, where economic conditions were more favorable |
| The outstanding progress we have made in our overseas markets across multiple operational and financial metrics serves as a springboard for our ongoing expansion and development |
| We are also fortifying our success and high-quality growth in China as we proactively adjust our strategies to suit China's dynamic economy |
| In 2024, we expect our Philippines' operation to maintain its robust, high double-digit growth momentum |
| These accomplishments have boosted our confidence as well as our visibility as we emerge as one of the top players in the Philippines |
| Thanks to our proven record as a trusted lending partner, we have also secured institutional funding in the Philippines and also have a strong pipeline of future institutional partners in place |
| This led to exponential growth in transaction volume and outstanding loan balance, which surged by over 200% on a year-over-year basis, contributing around 20% of international transaction volume in the fourth quarter |
| Our international business grew exceptionally well in 2023, propelled by our effective global outlook strategy of pursuing rapid growth in overseas markets |
| For the recent three months, our day 1 delinquency rate improved to 5.3% from 5.7% in the third quarter and further improved to 5.25% in February, while loan collection recovery rate remained stable at 87% with vintage delinquency returning to 2.5% |
| The Philippines has also demonstrated excellent growth |
| Our recovery should be ahead of the industry, and we are confident to maintain industry-leading asset quality with continuous improvement going into 2024 |
| Meanwhile, with our local focus strategy of pursuing high-quality growth in China, we continue to achieve progressive growth domestically |
| Full year sales of the motorcycles, the most popular mode of transportation in Indonesia, surged by 19.4% to 6.2 million units year-over-year |
| Boosted by the deployment of our advanced speech recognition technologies, as well as the AI-powered chatbot we mentioned earlier, our loan collection recovery rate for the recent three months remained healthy at 87% |
| We leveraged our various strengths to navigate the turbulence and conclude 2023 on a solid note |
| Our stable borrowing rates, coupled with better-than-industry delinquency rates and the enhanced operational efficiency enabled us to sustainably deliver higher ROA compared to the industry |
| We also strengthened our commitment to small business owners, supported by a prudent approach during this fragile and sometimes volatile recovery period |
| We expect our vintage delinquency for the most recent three months to be 2.5%, demonstrating our business resilience |
| Our day 1 delinquency rate improved to 5.3% in December and further improved to 5.2% in February |
| In addition, we further enhanced our credit risk assessment and fraud detection technologies during the quarter, which empowered us to navigate the macro headwinds and stabilize our asset quality |
| We hope rapid and healthy business growth can be the main way to create value for our shareholders |
| We significantly improved and optimized our operational process across all markets in which we operate |
| Amid these complex dynamics, we drove a modest, yet encouraging, recovery in our consumer credit demand through our ongoing refinement of borrower demographics and quality, with the number of new borrower applications increasing by between 3% to 5% |
| Statement |
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| Around the third quarter last year, we have observed some negative impact on the industry, which results in asset fluctuations |
| From observation and study, China macroeconomy is still facing uncertainties, but expect to have a gradual recovery |
| For example, we have reduced customer acquisitions from lower quality channels and stepped up our model updates from higher quality channels, updating the models, tightening the approval rates and credit limit for borrowers whom are more prone to economy uncertainties such as those with a higher level of debt |
| For post loans, I believe you are aware of the impact on loan collections due to the reductions of telephone lines |
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