X Financial Q4 FY2024 earnings call

• Kent Li mentioned total loan volumes in Q4 were RMB32 billion, up 24% YOY, full year RMB104.9 billion. Asset quality improved with lower delinquency rates. 2025 outlook includes 30% growth in loan volumes, leveraging AI for risk analytics, underwriting, and customer engagement. - Frank Zheng talked about net revenue up 43% YOY to RMB1.7 billion, net income up 104% YOY to RMB386 million. Full year net revenue RMB5.9 billion, net income RMB1.5 billion. Shareholder returns with dividends and buybacks.

No specific product segment financial performance details provided in the transcript. Total loan volumes in Q4 were RMB32 billion, a 24% year-over-year increase, with full year total loan volumes reaching RMB104.9 billion. Net revenue in Q4 increased 43% year-over-year to RMB1.7 billion, and net income grew 104% year-over-year to RMB386 million. Full year net revenue was RMB5.9 billion and net income was RMB1.5 billion.

• Expect total loan volumes to increase approximately 30% for the full year of 2025. - Anticipate sequential growth in total loan volume in Q1 2025. - First quarter 2025 loan amount facilitated and originated expected between RMB33.5 billion and RMB34.5 billion, full year between RMB134.4 billion and RMB138.4 billion.

• Forward-looking statements involve known and unknown risks, uncertainties and other factors difficult to predict and many beyond the company's control, which may cause actual results to differ materially from those described. Further information on risks can be found in SEC filings.

Q: During the fourth quarter, the company repurchased approximately 6.4 million ADSs on December 16, but the share count on the financial report as of December 31 does not fully reflect the reduction. Is this an accounting discrepancy?

A: Since the share buyback was in the last quarter of 2024, the share count calculation is based on weighted average. So that share count still will be accounted for 300 days out of 365 days. In 2025, those shares will totally disappear from the share count.

Q: Could you talk about Noah Kauffman's role?

A: Noah Kauffman says his focus is on deepening engagement with U.S. capital markets, enhancing Investor Relations, driving strategic financial initiatives, and working closely with the leadership team to optimize financial strategy and capital allocation to ensure continued delivery of long-term value for shareholders.

Q: How do you expect loan volume growth to translate to profitability this year?

A: Kent Li mentions profit will increase at the same pace as volume. Frank Zheng adds that in 2024, profit increased despite volume being almost same as previous years due to lower credit risk and funding cost down over 2%, and in 2025, confident in meaningful growth in volume and profitability.

Q: How do you think about capital allocation priorities going forward, whether to continue with buyback or lean into dividend more?

A: Frank Zheng says based on stock price change, they want to put more weight on share buyback, with 2024 having combined payout of US$76 million and hoping for more in 2025 with more emphasis on share buyback as stock still considered cheap.