Financial Data and Key Metrics Changes - In Q1 2025, the company facilitated RMB 35.15 billion in loans, reflecting an 8.8% sequential increase and 63.4% year-over-year growth [6][11] - Total revenue reached RMB 1.94 billion, up 13.4% from Q4 and over 60% year-over-year [7][12] - Non-GAAP adjusted net income for Q1 was RMB 457 million, a 44.9% year-over-year increase [14] - Basic earnings per ADS improved to USD 1.5, a 45.6% year-over-year increase [14] - Return on equity increased to 25.5%, rising 1.4 percentage points year-over-year [14] Business Line Data and Key Metrics Changes - The total loan outstanding balance, excluding loans over sixty days delinquent, reached RMB 58.4 billion, growing by more than 33% from Q1 2024 [11] - The company facilitated over 3,140,000 loans with an average loan amount of approximately RMB 11,181 [11] Market Data and Key Metrics Changes - The thirty-one to sixty days delinquency rate improved to 1.25% from 1.61% a year ago, reflecting a 22% improvement [8] - The ninety-one to one hundred and eighty days delinquency rate decreased to 2.7% from 4.7% in Q1 2024, a 37% reduction [8] Company Strategy and Development Direction - The company is focused on expanding opportunities through new partnerships and enhancing its technology platform and underwriting models [6] - There is a commitment to improving borrower experience by delivering faster decisions and simplifying application processes [7] - The company has authorized a new share repurchase plan for up to USD 100 million worth of Class A shares and ADS [15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the current macroeconomic environment, indicating it is favorable for portfolio growth [26] - The company expects total loan amounts facilitated in Q2 2025 to be between RMB 37.5 billion and RMB 39.5 billion, reflecting continued strong demand [16] - Management acknowledged potential regulatory changes but expressed confidence in compliance and the ability to adapt [43] Other Important Information - The regulatory environment in China is described as dynamic, with a focus on responsible credit assets and financial stability [16] - The company is actively engaging with regulatory authorities to ensure compliance with upcoming regulations [43] Q&A Session Summary Question: Current macroeconomic environment and loan market outlook - Management believes the current environment is still good for portfolio growth and is focused on managing growth responsibly [25][26] Question: Delinquency rate concerns - Management noted that while there may be some uptick in delinquency rates, overall portfolio health remains strong and profit will not be impacted [26][28] Question: Share repurchase program - Management indicated that no shares were repurchased in Q1 due to the open window policy but plans to utilize the remaining funds in the upcoming open window [36] Question: Loan growth guidance and credit demand - Management expects continued growth driven by customer acquisition and is confident in achieving a 30% volume growth for the year despite potential regulatory impacts [46]
X Financial(XYF) - 2025 Q1 - Earnings Call Transcript