Financial Data and Key Metrics Changes - Total net revenue increased by 13% year-on-year to RMB1.582 billion, up from RMB1.397 billion in the same period of 2023 [9][11] - Non-GAAP adjusted net income reached a record high of RMB434 million, up 6% year-on-year [9][14] - Total loan amount facilitated and originated was RMB28 billion, down 4% year-on-year but up 25% sequentially [6][8] Business Line Data and Key Metrics Changes - Delinquency rates improved, with loans past due for 31 to 60 days at 1.02% and for 91 to 180 days at 3.22%, compared to 1.29% and 4.38% in the previous quarter [6] - Origination and servicing expenses increased by 14% to RMB458 million, primarily due to increased collection expenses [12] - Borrower acquisition and marketing expenses rose by 21% to RMB507 million, reflecting intensified efforts in borrower acquisitions [13] Market Data and Key Metrics Changes - The Chinese government introduced a comprehensive stimulus package aimed at improving liquidity and stabilizing financial markets, which is expected to benefit the personal finance market [7] - The company anticipates a monthly loan volume exceeding RMB10 billion in Q4, setting a new record [8] Company Strategy and Development Direction - The company is focused on balancing business growth and profitability, continuing to execute its semi-annual dividend policy and exploring share repurchase opportunities [10] - Management is committed to optimizing risk management through advanced technology [6] Management Comments on Operating Environment and Future Outlook - Management views the regulatory environment as stable, with no significant changes expected in the near term [22] - The company expects continued growth in loan volumes due to favorable macroeconomic conditions [23] Other Important Information - The share repurchase program has been extended until March 2026, with approximately USD4.1 million remaining for potential repurchase [15][16] - The total loan amount facilitated and originated for 2024 is expected to be between RMB102.6 billion and RMB103.6 billion [17] Q&A Session Summary Question: Update on capital return program and regulatory landscape - Management confirmed a true repurchase program with about USD50 million remaining and expressed preference for share repurchase over dividends [20] - The regulatory environment is currently stable, with no significant changes expected [22] Question: Thoughts on dividend payout relative to peers - Management acknowledged the potential for higher dividends but emphasized the focus on share repurchase and maintaining a competitive yield [27][28] Question: Challenges faced regarding share buybacks - Management noted low volume as a challenge but expressed hope for increased buybacks as volumes rise [31]
X Financial(XYF) - 2024 Q3 - Earnings Call Transcript