X Financial(XYF) - 2024 Q3 - Quarterly Report

Financial Performance - Total net revenue for Q3 2024 was RMB1,582.5 million (US$225.5 million), representing a 13.3$53.6 million), compared to RMB347.2 million in Q3 2023, reflecting an 8.3% increase[8] - Non-GAAP adjusted net income reached RMB433.6 million (US$61.8 million) in Q3 2024, up 15.8$72.5 million), compared to RMB435.0 million in Q3 2023, reflecting a growth of approximately 17%[25] - Total net revenue for the three months ended September 30, 2024, was RMB 1,582,497, representing a 13.3% increase from RMB 1,396,864 in the same period of 2023[50] - Net income attributable to X Financial shareholders for the three months ended September 30, 2024, was RMB 375,840, up from RMB 347,190 in the same period of 2023, reflecting an increase of 8.5%[50] - The company reported financing income of RMB 335,765 for the three months ended September 30, 2024, which is a 11.5% increase compared to RMB 300,950 in the same period of 2023[50] - Operating costs and expenses for the three months ended September 30, 2024, totaled RMB 1,073,533, an increase from RMB 961,852 in the same period of 2023, indicating a rise of 11.6%[50] Loan Facilitation and Borrower Metrics - Total loan amount facilitated and originated in Q3 2024 was RMB28,338 million, down 4% year-on-year but up 24.6% sequentially[4] - The number of active borrowers increased to 1,965,248 in Q3 2024, up 8.6% from 1,809,815 in Q3 2023[4] - The total outstanding loan balance as of September 30, 2024, was RMB45,766 million, a decrease from RMB49,685 million as of September 30, 2023[5] - The company expects monthly loan volume to exceed RMB10 billion in Q4 2024, raising its guidance based on favorable market conditions[11] - The company expects total loan facilitation and origination for Q4 2024 to be between RMB30.0 billion and RMB31.0 billion, with an annual expectation of RMB102.6 billion to RMB103.6 billion for 2024[32] Delinquency and Provisioning - Delinquency rates for loans past due for 31-60 days improved to 1.02% in Q3 2024, down from 1.11% in Q3 2023[5] - In Q3 2024, the reversal of provision for loans receivable was RMB35 thousand (US$5 thousand), a significant decrease from RMB53.9 million in Q3 2023, attributed to a lower average estimated default rate[23] - Provision for contingent guarantee liabilities increased to RMB56.4 million (US$8.0 million) in Q3 2024, up from RMB41.6 million in Q3 2023, due to higher guarantee liabilities from increased loan facilitation[24] Share Repurchase and Equity - The company extended its US$30 million share repurchase program until March 31, 2026, having repurchased approximately 1.7 million shares for about US$1.3 million in Q3 2024[30] - A new US$20 million share repurchase plan was authorized, with approximately US$10.8 million remaining after a tender offer completed in July 2024[31] - Total equity increased to RMB 6,896,562 as of September 30, 2024, from RMB 5,847,124 as of December 31, 2023[49] Cash and Assets - Cash and cash equivalents decreased to RMB1,044.1 million (US$148.8 million) as of September 30, 2024, down from RMB1,612.2 million as of June 30, 2024[28] - Cash and cash equivalents as of September 30, 2024, were RMB 1,044,144, down from RMB 1,195,352 as of December 31, 2023[49] - As of September 30, 2024, total assets amounted to RMB 11,620,287, a slight decrease from RMB 11,650,023 as of December 31, 2023[49] - Total liabilities decreased to RMB 4,723,728 as of September 30, 2024, from RMB 5,802,899 as of December 31, 2023[49] Financial Reporting and Adjustments - The company utilizes non-GAAP financial measures to assess operating performance, which excludes certain expenses to provide a clearer view of core results[40] - The company has decided to separate borrower acquisition expenses from origination and servicing expenses to enhance financial statement clarity[51] - The company reported a total operating cost and expenses reclassification, which reflects a strategic shift in financial reporting[52] - The company reclassified fair value changes related to financial guarantee services and Consolidated Trusts, which does not impact net income for prior periods[52] Cost Management - Borrower acquisition and marketing expenses increased by 20.7$72.2 million) in Q3 2024, reflecting intensified efforts in this area[21] - General and administrative expenses decreased from RMB 48,588 to RMB 40,200 for the three months ended September 30, 2023, indicating improved cost management[52]