The following is a summary of the X Financial (XYF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• X Financial reported a net revenue increase to RMB 1.4 billion, up 12.5% year-on-year.

• Net income grew significantly, reaching a record high of RMB 415 million, growing 13% year-on-year.

• Origination and service expenses rose by 19% due to increased collection efforts, while borrower acquisition and marketing expenses saw a minor decrease of 3%.

• They have implemented a share repurchase program of 20 million shares and completed a tender offer for 2 million ADS, enhancing shareholder value.

Business Progress:

• X Financial has adapted its loan volume management in response to asset quality, resulting in a sequential increase in loan volume while maintaining control over delinquency rates.

• The company has refined its risk management systems for sustainable profitability and expects loan volumes to recover in the second half of the year.

• A semi-annual dividend policy was established, with the declaration of $0.17 per ADS for the first half of 2024.

Opportunities:

• There are plans to ease strict controls on loan volumes, anticipating a gradual recovery, supported by improved asset quality and refined risk management systems.

Risks:

• Delinquency performance showcased significant year-on-year increases, potentially impacting future revenue from loans despite current management efforts.

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.