X Financial Q3 FY2024 earnings call

• Loan volumes exceeded forecast with Q3 total loan amount facilitated and originated at RMB28 billion, up 25% sequentially. - Asset quality improved with lower delinquency rates. - Chinese government's stimulus package expected to boost macroeconomic recovery and benefit the personal finance market. - Total net revenue up 13% year-on-year to RMB1.582 billion. Origination and servicing expenses up 14%, borrower acquisitions and marketing expenses up 21%. Income from operations up to RMB509 million. - Extended share repurchase programs: USD30 million plan extended to end of March 2026 and USD20 million plan effective until November 30, 2025.

Total net revenue was RMB1.6 billion, up 13% year-on-year and 15% sequentially. Non-GAAP adjusted net income reached a record high of RMB434 million, up 6% year-on-year and sequentially. Total loan amount facilitated and originated was down 4% year-on-year but up 25% sequentially to RMB28 billion in Q3. Delinquency rates for all outstanding loans past due for 31 days to 60 days and 91 days to 180 days were 1.02% and 3.22% respectively at quarter end, improving from prior periods.

• Q4 loan amount facilitated and originated expected to be between RMB30 billion and RMB31 billion. - 2024 total loan amount facilitated and originated expected to be between RMB102.6 billion and RMB103.6 billion. - Raised guidance for Q4 monthly loan volume to exceed RMB10 billion.

• Forward-looking statements subject to risks and uncertainties beyond the company's control as per SEC filings. - General market and economic uncertainties, though current regulatory environment is stable.

Q: Unidentified Analyst asked about the capital return program and regulatory landscape.

A: Frank Fuya Zheng mentioned the share repurchase programs and Kan Li stated the regulatory environment is fairly stable with no significant expected regulations in the industry.

Q: Mason Bourne followed up on dividend and buyback.

A: Frank Fuya Zheng discussed plans for share repurchase and dividend payout, noting they will continue to return capital and address valuation issues over time.