Question · Q3 2025
Chen Yang inquired about X Financial's expected take rate for Q4 2025, considering the reduced loan origination volume and current risk environment, and also questioned the company's capital allocation strategy given potential future drops in return on equity.
Answer
CFO Frank Fuya Zheng indicated that discussing future take rates is premature, but anticipated a material negative impact on take rates, volume, and profitability due to new regulations. Chief Financial Strategy Officer Noah Kauffman detailed the ongoing share repurchase program, with $48 million remaining, and affirmed the company's commitment to maintaining the current dividend, emphasizing a balanced capital allocation strategy focused on long-term shareholder value. Mr. Zheng added that while buybacks are effective, the company might rely more on dividends next year.
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