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X Financial (NYSE: XYF) is a leading online personal finance company in China that connects borrowers with institutional funding partners. The company leverages proprietary big data-driven technology to facilitate and originate loans for prime borrowers under a robust risk assessment and control system. X Financial offers a range of financial products and services, focusing on loan facilitation and post-origination services.
- Xiaoying Credit Loan - Facilitates personal loans for prime borrowers, leveraging big data technology to assess risk and connect with institutional funding partners.
- Financing Income - Generates revenue through interest income from loans facilitated and originated by the company.
- Post-origination Service - Provides cash processing and collection services for loans after origination.
- Other Revenue - Includes various additional services offered by the company.
- Guarantee Income - Manages default and prepayment risks associated with loans.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Yue (Justin) Tang ExecutiveBoard | CEO and Chairman | None | Founder of X Financial, responsible for overall business strategies and operations. | View Report → |
Frank Fuya Zheng Executive | CFO | Independent Non-executive Director at Newegg Commerce, Inc. (NASDAQ: NEGG) | CFO since August 2020, overseeing financial operations and compliance. Previously CFO at Cogo Group, Inc. and VP at eLong.com. | |
Yufan (Jason) Jiang Executive | Chief Risk Officer | None | Joined XYF in 2015, appointed Chief Risk Officer in November 2023. Over 10 years of experience in personal credit, database management, and risk strategy development. | |
Longgen Zhang Board | Independent Director | CEO at Daqo New Energy Corp., Independent Non-Executive Director at ZZ Capital International Limited, Director at JinkoSolar Holding Co., Ltd. | Independent Director since September 2018. Former CFO at JinkoSolar and Xinyuan Real Estate. Holds master's degrees in Professional Accounting and Business Administration. | |
Shaoyong (Simon) Cheng Board | Non-executive Director | None | Joined XYF in 2015. Previously Vice Chairman, Executive Director, President, and Chief Risk Officer. Held senior roles at Bank of Communications, HSBC, Hang Seng Bank, and Capital One. | |
Zheng Xue Board | Independent Director | Independent Director at Yingli Solar (YGE) | Independent Director since September 2018. Chairman of the Audit Committee since May 2024. Holds a bachelor's degree in physics and an MBA. |
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Your total net revenue increased by 13% year-over-year in Q3 2024, but origination and servicing expenses and borrower acquisitions and marketing expenses also increased by 14% and 21% respectively ; how do you plan to manage these rising costs to ensure sustained profitability?
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Despite implementing share repurchase programs totaling USD 50 million, you've indicated challenges in executing buybacks due to low trading volume ; what strategic measures are you considering to overcome this limitation and enhance shareholder value?
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You've raised your guidance for Q4, expecting monthly loan volumes to exceed RMB 10 billion, setting a new record ; given the current economic conditions and regulatory environment in China, what factors give you confidence in achieving these targets?
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Your stock is trading at just over 1x earnings, significantly lower than your peers who trade at 3-5x earnings ; what steps are you taking to address this valuation gap and better communicate your company's value to investors?
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With borrower acquisition and marketing expenses increasing by 21% year-over-year due to intensified efforts , how sustainable is this approach, and what strategies are in place to optimize acquisition costs while maintaining asset quality?
Recent press releases and 8-K filings for XYF.
- Loan volume growth: In Q4 2024, total loan volumes reached RMB 32 billion—a 24% year-over-year increase—with full-year volumes at RMB 104.9 billion, reflecting strong underwriting and risk management.
- Revenue and profitability surge: Q4 net revenue increased 43% to RMB 1.7 billion and net income jumped 104% to RMB 386 million, with full-year revenue and net income at RMB 5.9 billion and RMB 1.5 billion respectively.
- Shareholder returns and capital strategy: The company returned approximately USD 76 million to shareholders through dividends and share repurchases, and indicated a stronger emphasis on buybacks in 2025.
- Strategic initiatives: Management highlighted ongoing investments in AI technology and efforts to deepen engagement with U.S. capital markets, aiming to enhance future growth and profitability.
- Loan portfolio expanded with a total outstanding balance reaching 52,327 mn RMB and 32,297 mn RMB in new loan facilitation during Q4 2024.
- Financial performance in Q4 2024 included a total net revenue of 1,709 mn RMB, an operating margin of 30.7%, and a GAAP net income of 385,626 RMB thousand.
- The company maintained its 100% institutional funding model and diversified partnerships, supported by robust risk management practices.
- Q4 Highlights: Total loan amount facilitated reached RMB32,297 million (up 23.6% YoY) with active borrowers at 2,120,068, and Q4 net revenue increased to RMB1,708.7 million (up 43.3% YoY), while net income more than doubled to RMB385.6 million.
- Full Year Performance: Fiscal Year 2024 net revenue increased by 22% to RMB5,871.8 million, and net income rose by 29.8% to RMB1,539.9 million.
- Improved Asset Quality & Operational Efficiency: Delinquency rates improved (31-60 day rate at 1.17% and 91-180 day rate at 2.48%), reflecting enhanced risk management and a favorable macroeconomic environment.
- Outlook and Strategic Initiatives: Management projected a 30% increase in total loan volumes for 2025 and announced investments in AI applications to boost operational efficiency and customer service.
- Q4 Performance: The company’s total loan amount facilitated and originated reached RMB32,297 million in Q4 2024 (up from RMB26,134 million in Q4 2023) with a significant increase in active borrowers, indicating robust lending activity.
- Asset Quality Improvement: Delinquency rates improved with loans past due 31-60 days declining to 1.17% and those past due 91-180 days declining to 2.48% at the end of Q4 2024, reflecting enhanced risk management.
- Fiscal Year Growth: For FY2024, the company reported a 22% increase in net revenue (RMB5,871.8 million) and a 29.8% increase in net income (RMB1,539.9 million), underscoring significant overall financial growth.
- Capital Actions and Guidance: The document noted a Q4 share repurchase of approximately 38.4 million Class A ordinary shares and announced a semi-annual dividend of US$0.25 per ADS, with future loan volumes expected to grow, driving optimism for Q1 2025.