#China #Shenzhen #X Financial #Q3 2024 #personal finance

X Financial's Third Quarter 2024 Financial Report

X Financial (NYSE: XYF), a prominent player in China's online personal finance sector, has released its unaudited financial outcomes for the third quarter ending September 30, 2024. This quarter marks a period of notable operational achievements and noteworthy financial metrics, indicating the momentum the company is gaining in a dynamic economic landscape.

Operational Highlights

During Q3 2024, X Financial facilitated and originated a total loan amount of RMB 28.338 billion, a decline of 3.8% compared to RMB 29.462 billion in Q3 2023 but a sequential increase of 24.6%. The number of active borrowers also saw an uptick, reaching 1,965,248, up from 1,809,815 a year prior.

As of September 30, 2024, the total outstanding loan balance stood at RMB 45.766 billion. The company achieved improvements in asset quality, with delinquency rates for loans overdue by 31-60 days and 91-180 days decreasing to 1.02% and 3.22%, respectively. These metrics reflect a focus on prudent risk management strategies, positioning X Financial to navigate future challenges effectively.

Financial Performance

Revenue Growth

X Financial's total net revenue for the third quarter reached RMB 1,582.5 million (approximately USD 225.5 million), showing a year-over-year increase of 13.3% from RMB 1,396.9 million in Q3 2023. Factors contributing to this growth include a diversified revenue stream from various services:

• - Loan facilitation service increased by 5.9%
• - Financing income saw an increase of 11.6%
• - Guarantee income surged by a remarkable 576.5%

Operating Costs

On the expense side, total operating costs rose to RMB 1,073.5 million, marking an 11.6% increase from Q3 2023. Significant factors influencing costs were increased borrower acquisition and marketing expenses, which heightened by 20.7% to RMB 506.8 million.

Net Income and EPS

Net income for Q3 2024 was reported at RMB 375.8 million, showing an 8.3% improvement from RMB 347.2 million in Q3 2023. The company's Basic and Diluted Earnings Per Share (EPS) also reflected growth at RMB 7.86 and RMB 7.74, respectively.

Non-GAAP Measures

X Financial utilizes Non-GAAP financial measures to assess its performance more comprehensively. Adjusted net income grew to RMB 433.6 million which is 15.7% higher than the previous year’s figures.

Strategic Outlook

The landscape for personal finance in China is continuously evolving, especially following the recent government stimulus aimed at enhancing liquidity and boosting the economy. Mr. Kent Li, the President of X Financial, expressed optimism regarding the favorable macroeconomic conditions expected to drive growth. "As we strategically adjust our loan volumes based on risk metrics, we’re seeing favorable changes in borrower acquisition outcomes, demonstrating our operational agility."

In alignment with strategic objectives, X Financial anticipates that total loan facilitation for the fourth quarter will hit the RMB 30.0 to 31.0 billion mark. Given the recent positive shifts in the market, these ambitions seem within reach, reflecting an ambitious yet calculated growth trajectory.

Conclusion

X Financial’s Q3 2024 financial results emphasize the company's resilience and adeptness in navigating market fluctuations while continuing to deliver value to its shareholders. The organization's focus on strategic partnerships, enhanced asset quality, and robust financial management highlights the potential for sustained growth in an ever-competitive landscape. As the company prepares for its earnings conference call, all eyes will be on what lies ahead for this influential player in the personal finance space.

For further details, visit X Financial's investor relations page.