X Financial(XYF) - 2025 Q2 - Quarterly Report

Loan Performance - Total loan amount facilitated and originated in Q2 2025 was RMB38,994 million, up 71.4% from RMB22,749 million in Q2 2024[8] - Total outstanding loan balance at the end of Q2 2025 was RMB64,911 million, an increase of 55.3% from RMB41,804 million in Q2 2024[8] - Number of active borrowers in Q2 2025 was 2.85 million, reflecting a 73.7% increase from 1.64 million in Q2 2024[8] - Delinquency rate for loans past due 31-60 days improved to 1.16% as of June 30, 2025, down from 1.29% in the same period of 2024[8] Financial Performance - Total net revenue in Q2 2025 was RMB2,273.1 million (US$317.3 million), representing a 65.6% increase from RMB1,372.6 million in Q2 2024[12] - Net income in Q2 2025 was RMB528.0 million, a 27.1% increase compared to RMB415.3 million in Q2 2024[12] - Non-GAAP adjusted net income in Q2 2025 was RMB593.2 million, up 58.3% from RMB374.7 million in Q2 2024[12] - Loan facilitation service revenue for Q2 2025 was RMB 1,369,443, a 87.2% increase from RMB 732,249 in Q2 2024[38] - Operating costs and expenses for Q2 2025 totaled RMB 1,598,067, a significant rise from RMB 909,535 in Q2 2024, reflecting a 75.7% increase[38] - Basic net income per share for Q2 2025 was RMB 2.10, compared to RMB 1.41 in Q2 2024, marking a 48.2% increase[39] - Comprehensive income for the first half of 2025 was RMB 982,365, an increase from RMB 788,177 in the same period of 2024[38] Shareholder Information - The company repurchased approximately 16.7 million Class A ordinary shares for a total consideration of approximately US$47.7 million under its share repurchase programs[17] - As of June 30, 2025, cash and cash equivalents totaled RMB1,152.99 million (US$161.0 million), a decrease from RMB1,389.5 million at March 31, 2025, primarily due to significant share repurchases[21] - Shareholders' equity grew to RMB7,720.9 million (US$1.08 billion), reflecting an increase in retained earnings[21] - The equity-to-assets ratio remained healthy at approximately 56.4%, indicating a conservative leverage profile[21] Asset and Liability Overview - Accounts receivable and contract assets increased to RMB3,161.64 million (US$441.35 million) as of June 30, 2025, up from RMB2,029.55 million[37] - Loans receivable from Credit Loans and other loans rose to RMB5,017.64 million (US$700.44 million) as of June 30, 2025, compared to RMB4,828.32 million[37] - Total assets reached RMB13,687.86 million (US$1,910.75 million) as of June 30, 2025, up from RMB11,819.29 million[37] - Total liabilities increased to RMB5,966.95 million (US$832.95 million) as of June 30, 2025, from RMB4,866.13 million[37] Regulatory Environment - The regulatory environment for internet-based lending remained consistent, with no major changes introduced during the quarter[22] - The company continues to engage proactively with regulators and ecosystem partners to diversify funding sources and expand product offerings[25] Business Outlook - Business outlook for Q3 2025 expects total loan amount facilitated to be in the range of RMB32.0 billion to RMB34.0 billion[14] Foreign Exchange and Provisions - The company reported a foreign exchange gain of RMB 2,101 in Q2 2025, compared to a loss of RMB 7,807 in Q2 2024[38] - The provision for loans receivable decreased to RMB 46,394 in Q2 2025 from RMB 95,865 in Q2 2024, indicating improved asset quality[38]