#China #Shenzhen #X Financial #Fintech Platform #loan facilitation

X Financial First Quarter 2025 Financial Results

X Financial (NYSE: XYF), a prominent fintech platform in China, has reported robust performance for the first quarter of fiscal year 2025. The company announced its unaudited financial results, showcasing significant increases in loan facilitation alongside rising revenue figures.

Financial Performance Highlights

During the first quarter of 2025, X Financial facilitated and originated loans totaling approximately RMB 35.1 billion, marking a remarkable 63.4% increase from RMB 21.5 billion in the same period of 2024. This impressive growth trajectory is underscored by the company's ability to meet strong borrower demand, which has increased the average loan amount to RMB 11,181 per transaction.

At the end of Q1 2025, the total outstanding loan balance reached RMB 58.4 billion, a 33.3% year-over-year increase from RMB 43.8 billion in the previous year. The number of active borrowers also saw a significant rise, hitting 2.43 million, up 77.1% from 1.37 million in the same period last year. This growth reflects not only an expanding customer base but also strengthened borrower engagement with the platform.

Revenue Growth

X Financial recorded total net revenues of RMB 1.94 billion (approximately US$267 million), which represents a 60.4% increase compared to RMB 1.21 billion for the first quarter of 2024. The revenue surge is largely driven by increased loan facilitation services, which grew 75.6% year-over-year, alongside significant rises in post-origination service fees and guarantee income.

Operating income also saw a notable increase of 52.1% year-over-year, reaching RMB 572.9 million, highlighting X Financial's strong operational efficiency despite bolstered funding in marketing and borrower acquisition. Notably, the company's net income for this quarter amounted to RMB 458.1 million, which is up 26.2% from the previous year's RMB 363.1 million. The basic and diluted net income per American depositary share (ADS) was RMB 10.92 and RMB 10.56, respectively, reflecting impressive year-over-year growth.

Asset Quality and Risk Management

An important aspect of the financial results was the improvement in asset quality. The company reported a reduced delinquency rate of 1.25% for loans that were 31-60 days overdue, a decrease from 1.61% in the same period last year. Similarly, the delinquency rate for loans overdue by 91-180 days dropped to 2.73%, down from 4.37%. These improvements indicate effective risk management strategies implemented by the company, which is crucial for sustaining long-term growth.

Future Outlook

Looking forward, X Financial is optimistic about maintaining momentum in loan volume. The company anticipates the total loan amount facilitated in the upcoming quarter to range between RMB 37.5 billion to RMB 39.5 billion, capitalizing on strong market demand and operational execution. Additionally, X Financial has launched a new share repurchase program aimed at returning up to US$100 million to shareholders, effective from June 1, 2025, through November 30, 2026. This move reflects ongoing confidence in the company's growth potential.

Overall, the results from the first quarter of 2025 illustrate X Financial's strong market presence and capability in the competitive fintech landscape in China. The company’s focus on innovation, efficient risk management, and improved customer experience positions it well for continued success in the future.