X Financial (XYF) Q3 2024 earnings summary

Executive summary

• Achieved strong sequential and year-over-year growth in revenue and net income, with loan volumes exceeding forecasts and significant improvement in asset quality.

• Record non-GAAP adjusted net income was driven by intensified borrower acquisition and optimized risk management.

• X Financial leverages proprietary technology and data-driven credit assessment models to optimize risk control and operational efficiency.

• As of Q3 2024, total loan facilitation and origination reached RMB 28,338 million, with 1.97 million active borrowers and a loan balance of RMB 45,766 million.

Financial highlights

• Total net revenue for Q3 2024 was RMB 1,582.5 million, up 13.3% year-over-year and 15.3% sequentially.

• Non-GAAP adjusted net income reached a record RMB 433.6 million, up 15.8% year-over-year and 15.7% sequentially.

• Net income was RMB 375.8 million, up 8.3% year-over-year.

• Income from operations was RMB 509 million, up from RMB 435 million year-over-year.

• Cash and cash equivalents stood at RMB 1,044.1 million as of September 30, 2024.

Outlook and guidance

• Q4 2024 loan facilitation and origination expected between RMB 30.0–31.0 billion; full-year 2024 guidance at RMB 102.6–103.6 billion.

• Monthly loan volume in Q4 anticipated to exceed RMB 10 billion, setting a new record.

• Growth strategies include expanding the user base, enhancing risk management and technology, optimizing product offerings, strengthening brand awareness, and diversifying funding sources.