Financial Data and Key Metrics Changes - Total loan volumes in Q4 reached RMB32 billion, a 24% year-over-year increase, while full-year loan volumes were RMB104.9 billion, stable compared to 2023 [8][10] - Q4 net revenue increased by 43% year-over-year to RMB1.7 billion, and net income grew by 104% year-over-year to RMB386 million [14] - Full-year total net revenue reached a record RMB5.9 billion, with full-year net income at RMB1.5 billion [15] Business Line Data and Key Metrics Changes - The delinquency rate for loans overdue by 31 to 60 days improved to 1.17% from 1.57% a year ago, and the 91 to 108 days overdue delinquency rate declined to 2.48% from 3.12% [10][11] - The company expects total loan volumes to increase by approximately 30% for the full year of 2025, driven by organic demand and a stable regulatory environment [12] Market Data and Key Metrics Changes - China's government implemented monetary and fiscal stimulus measures that lowered funding costs and fostered healthy borrower demand in the personal finance market [9][10] - The company anticipates sequential growth in total loan volume in Q1 2025, despite the usual seasonal impact of the Chinese New Year [12] Company Strategy and Development Direction - The company is focused on leveraging technology to enhance financial services efficiency, utilizing AI-powered risk analytics and automated underwriting models [12][13] - Strategic investments in AI are being expanded, with AI now powering customer service robots and intelligent marketing campaigns [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for 2025, supported by robust underwriting standards and disciplined risk management [16][18] - The company is confident in achieving meaningful growth in both volume and profitability in 2025, despite some visibility challenges [36][37] Other Important Information - The company returned approximately USD 76 million to shareholders in 2024, including cash dividends and share repurchases [15][16] - A semi-annual dividend of USD 0.25 per ADS was declared, reinforcing the commitment to delivering shareholder value [15] Q&A Session Summary Question: Clarification on share repurchase accounting - Management clarified that the share count calculation is based on a weighted average, which is why the reduction is not fully reflected in the year-end report [21][22][23] Question: New hire's role in the company - The new hire, Noah Kauffman, will focus on deepening engagement with U.S. capital markets and enhancing investor relations [26][28] Question: Drivers behind expected loan volume growth for 2025 - The expected 30% increase in loan volume is attributed to improved customer acquisition strategies and partnerships with more platforms [29][30] Question: Impact of loan volume growth on profitability - Management indicated that profitability is expected to increase at a similar pace as loan volume, driven by lower funding costs and improved risk management [33][36] Question: Capital allocation priorities going forward - The company plans to emphasize share buybacks over dividends, while still maintaining a balanced approach to capital returns [38][42]
X Financial(XYF) - 2024 Q4 - Earnings Call Transcript