Financial Data and Key Metrics Changes - In Q1 2024, total loan amount facilitated decreased by 11% year-over-year and 18% quarter-over-quarter to RMB 22 billion, aligning with company guidance [4] - Total outstanding loan balance was RMB 44 billion at the end of March 2024, with delinquency rates for loans past due for 31 to 60 days and 91 to 180 days at 1.61% and 4.37%, respectively, compared to 1.05% and 2.4% a year ago [5] - Total net revenue increased by 20% year-over-year and 1% quarter-over-quarter to RMB 1.2 billion, while net income rose by 28% year-over-year and 92% quarter-over-quarter to RMB 363 million [6][10] Business Line Data and Key Metrics Changes - Origination and servicing expenses increased by 15% to RMB 427 million, primarily due to increased collection expenses [9] - Borrower acquisition and marketing expenses decreased by 9% to RMB 248 million, attributed to lower borrower acquisition costs [9] - Provision for loan receivables was RMB 62 million, up from RMB 20 million in the same period of 2023, due to an increase in loan receivables held by the company [9] Market Data and Key Metrics Changes - The overall loan demand in the Chinese economy is stable or slightly declining, with major banks reporting decreased loan volumes and profits [13] - The company’s loan portfolio remains at an elevated risk level, although there was some stabilization compared to the previous quarter [14] Company Strategy and Development Direction - The company continues to implement a strategy of dynamically adjusting loan volumes based on asset quality dynamics, which has proven effective in securing profitability [4] - A new share repurchase program has been authorized for up to $20 million, effective from January 1, 2024, to November 30, 2025, indicating confidence in long-term shareholder value creation [8] - The company expects total loan amount facilitated and originated for 2024 to be around RMB 100 billion, with Q2 expectations between RMB 23 billion and RMB 24.5 billion [7][10] Management Comments on Operating Environment and Future Outlook - The Chinese economy is facing challenges, with a deflationary environment impacting loan demand [13] - The regulatory environment remains stable with no significant new developments reported [16] Other Important Information - The company has combined borrower acquisition costs from origination and service expenses into a clearer breakdown for investors [7] Q&A Session Summary Question: Insights on the Chinese economy's impact on loan volumes and outlook - The Chinese economy is facing challenges, with stable or slightly declining loan demand, and major banks reporting decreased loan volumes and profits [13] Question: Regulatory environment outlook - The regulatory environment is stable with no significant new developments in the quarter [16]
X Financial(XYF) - 2024 Q1 - Earnings Call Transcript