Kenny from Norton Anders's questions to X Financial (XYF) leadership • Q1 2025
Question
Kenny from Norton Anders asked about the drivers behind X Financial's strong growth, the firm's view on the macroeconomic environment, and the reasons for the slight uptick in delinquency rates. He also inquired about the company's share repurchase strategy, noting the lack of buybacks in Q1 despite a newly authorized program.
Answer
President Kan Li explained that growth is driven by maturing customer cohorts and is managed based on risk assessment, not for growth's sake. He noted that while delinquency ticked up from a low base, it remains healthy and is expected to be offset by scale. CFO Fuya Zheng added that the underlying risk profile is stable and that Q1 risk-related costs were actually lower when viewed comprehensively. Regarding buybacks, Mr. Zheng clarified that Q1 lacked an open trading window and affirmed the company's intent to utilize its repurchase authorizations in the upcoming open window and beyond.