X Financial (XYF) Q2 2024 earnings summary

Executive summary

• Achieved record net income of RMB 415.3 million in Q2 2024, up 13.4% year-over-year and 14.4% sequentially, driven by improved profitability and proactive loan volume management, despite a 12.1% year-over-year decline in loan volume.

• Total loan facilitation and origination reached RMB 22,749 million for Q2, with 1.64 million active borrowers and a loan balance of RMB 41,804 million as of June 30, 2024.

• Focused on sustainable profitability and shareholder value through flexible tactics, risk management, and advanced technology.

• Leveraged proprietary technology, diversified funding sources, and a seasoned management team to maintain industry position.

Financial highlights

• Total net revenue rose 12.5% year-over-year and 14% sequentially to RMB 1,372.6 million in Q2 2024.

• Net income grew 13% year-over-year and 14% sequentially to RMB 415.3 million, a company record.

• Non-GAAP adjusted net income was RMB 374.7 million, up 2.7% year-over-year.

• Operating margin for Q2 2024 was 29.9%, compared to 30.4% in Q2 2023.

• Cash and cash equivalents increased to RMB 1,612 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 loan volume expected between RMB 26 billion and RMB 27.5 billion.

• Management anticipates gradual year-over-year recovery in loan volumes in the second half of 2024 as asset quality improves.