X Financial (XYF) 2025 Q2 法說會逐字稿

Hello, and welcome to the X Financial second quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Victoria Yu. Please go ahead.

您好，歡迎參加 X Financial 2025 年第二季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在我想將會議交給 Victoria Yu。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining today's call. The company's financial results were released earlier today and are available on our Investor Relations website at ir.xiaoyinggroup.com. On the call today from X Financial are Mr. Kan Li, President; Mr. Frank Fuya Zheng, Chief Financial Officer; and Mr. Noah Kauffman, Chief Financial Strategy Officer. Mr. Li will start with a brief overview of our business progress and financial performance.

謝謝您，接線生。大家好，感謝大家參加今天的電話會議。該公司的財務業績已於今日早些時候發布，可在我們的投資者關係網站 ir.xiaoyinggroup.com 上查閱。小贏集團今日電話會議的嘉賓包括總裁李侃先生、財務長鄭福亞先生和財務策略長 Noah Kauffman 先生。李先生首先會簡單介紹一下我們的業務進度和財務表現。

Then Mr. Kauffman will go over some key Q2 metrics and highlights. After that, Mr. Zheng will share updates on financials, regulatory insights and our 2025 outlook. Afterwards, Mr. Li, Mr. Zheng and Mr. Kauffman will be available to answer your questions during the Q&A session.

然後考夫曼先生將介紹一些關鍵的第二季指標和亮點。之後，鄭先生將分享財務最新動態、監管見解以及我們 2025 年的展望。隨後，李先生、鄭先生和考夫曼先生將在問答環節回答大家的提問。

I remind you that this call may contain forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and involve known or unknown risks, uncertainties and other factors. These factors are difficult to predict and many are beyond the company's control, which may cause actual results, performance and achievements to differ materially from those described in these statements.

我提醒您，根據 1995 年《私人證券訴訟改革法》的安全港條款，本次電話會議可能包含前瞻性聲明。此類聲明是基於管理層目前的預期，涉及已知或未知的風險、不確定性和其他因素。這些因素難以預測，且許多因素超出了公司的控制範圍，可能導致實際結果、業績和成就與這些聲明中描述的結果、績效和成就有重大差異。

Further information on these and other risks can be found in our SEC filings. The company undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required by law. It is now my pleasure to introduce Mr. Kan Li.

有關這些風險和其他風險的更多資訊可以在我們的美國證券交易委員會 (SEC) 文件中找到。除非法律要求，否則本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性陳述的義務。現在我很高興介紹李侃先生。

Thank you, Victoria, and hello, everyone. We are very pleased with our continued momentum in 2025. In the second quarter, we facilitated RMB38.99 billion in loans, a 10.9% sequential increase and a strong 71.4% growth year-over-year. This was another standout quarter for originations, supported by robust borrower demand and continued advance in risk management.

謝謝你，維多利亞，大家好。我們對 2025 年的持續發展勢頭感到非常高興。第二季度，我們發放貸款389.9億元，季增10.9%，年增71.4%。這是貸款發放方面又一個表現突出的季度，得益於借款人需求的強勁以及風險管理的持續進步。

Our team remains committed to expanding market opportunities through both new partnerships and the deepening of existing relationships, further strengthening our technology platform and underwriting models to drive profitability and scalability, carefully balancing growth opportunities with prudent risk management as we increase -- as we increase access to qualified borrowers.

我們的團隊將繼續致力於透過建立新的合作夥伴關係和深化現有的關係來擴大市場機會，進一步加強我們的技術平台和承保模式，以提高盈利能力和可擴展性，並在增加合格借款人管道的同時，謹慎地平衡增長機會和審慎的風險管理。

We also continue improving borrower experience by speeding up decision-making, streamlining applications and enhancing transparency. Simultaneously, we have made meaningful enhancements to platform reliability and borrower-facing tools, empowering users to make informed credit decisions and managing repayments confidently.

我們也透過加快決策速度、簡化申請流程和提高透明度來持續改善借款人的體驗。同時，我們對平台可靠性和以藉款人為導向的工具進行了有意義的改進，使用戶能夠做出明智的信用決策並自信地管理還款。

Despite the ongoing regulatory environment and macroeconomic uncertainty, we delivered significant sequential growth in loan volume and revenue. Total revenue reached RMB2.27 billion, up 17.3% sequentially and notably higher at 65.6% growth year-over-year. These results reflected disciplined execution and ongoing expansion of our platform and capabilities.

儘管監管環境和宏觀經濟不確定性持續存在，我們的貸款金額和收入仍實現了顯著的連續成長。總營收達到人民幣22.7億元，較上一季成長17.3%，較去年同期成長65.6%，增幅顯著。這些結果反映了我們平台和能力的嚴格執行和持續擴展。

Operational and credit quality update. We also continued making positive strides in asset quality. As of June 30, our 31 day to 60 day delinquency rate improved to 1.16%, down from 1.29% a year ago, reflecting nearly a 10% improvement year-over-year. The 91 days to 180 days delinquency rate was 2.91%, substantially lower than the 4.38% in Q2 2024, demonstrating a meaningful 33% reduction year-over-year. This improvement highlights our continued commitment to disciplined borrower screening and rigorous underwriting practices.

營運和信用品質更新。我們的資產品質也持續取得積極進展。截至 6 月 30 日，我們的 31 天至 60 天拖欠率改善至 1.16%，低於一年前的 1.29%，比去年同期改善近 10%。91 天至 180 天的拖欠率為 2.91%，大幅低於 2024 年第二季的 4.38%，年比大幅下降 33%。這項改進凸顯了我們對嚴格的借款人篩選和嚴格的核保實務的持續承諾。

We have also proactively improved borrower engagement, leveraging timely communication and customized repayment assistance programs. These initiatives continue to drive better borrower behavior, significantly contributing to the stability and the quality of our portfolio.

我們也積極提高借款人的參與度，利用及時溝通和客製化的還款援助計劃。這些舉措繼續推動更好的借款人行為，大大提高了我們投資組合的穩定性和品質。

With that, I'll now turn it over to Noah, who will walk through additional financial and operational highlights from the second quarter.

現在，我將把時間交給諾亞，他將介紹第二季的更多財務和營運亮點。

Great. Thank you. Hello, everyone. It's great to speak with you today. Let me highlight some key points from our Q2 operational and financial results. On operational metrics, we facilitated approximately RMB38.99 billion in loan originations, up significantly by 71.4% year-over-year.

偉大的。謝謝。大家好。今天很高興與您交談。讓我重點介紹一下我們第二季營運和財務表現的一些要點。經營指標方面，本行促成貸款發放約人民幣389.9億元，較去年大幅成長71.4%。

Our total outstanding loan balance, excluding loans delinquent more than 60 days, reached RMB64.91 billion, representing an increase of 55.3% from Q2 2024. Total number of loans facilitated increased substantially to approximately 3.72 million, reflecting a growth of 70.8% year-over-year with an average loan size of RMB10,476. Our active borrower base grew meaningfully, reaching approximately 2.85 million, a notable 73.7% increase year-over-year.

我們的未償還貸款總額（不包括拖欠 60 天以上的貸款）達到 649.1 億元，較 2024 年第二季增加 55.3%。累計促成貸款筆數大幅增加至約372萬筆，較去年同期成長70.8%，平均每筆貸款金額為人民幣10,476元。我們的活躍借款人群體大幅成長，達到約 285 萬人，年增 73.7%。

On the financial highlights, our total net revenue reached RMB2.27 billion, reflecting strong sequential growth of 17.3% and impressive 65.6% year-over-year growth driven by increased loan origination volumes and continued expansion of our loan facilitation services.

在財務亮點方面，我們的總淨收入達到人民幣 22.7 億元，環比增長 17.3%，同比增長 65.6%，這得益於貸款發放量的增加和貸款便利服務的持續擴展。

Income from operations increased meaningfully to RMB675.1 million, rising by 45.8% year-over-year, underscoring our continued focus on operating leverage and disciplined expense management. We reported non-GAAP adjusted net income of RMB593.2 million, reflecting robust year-over-year growth of 58.3%, demonstrating continued profitability momentum as we scale our business.

營業收入大幅增加至人民幣 6.751 億元，年增 45.8%，凸顯了我們持續注重經營槓桿和嚴格的費用管理。我們公佈的非美國通用會計準則調整後淨收入為人民幣5.932億元，較去年同期強勁成長58.3%，顯示隨著業務規模的擴大，獲利勢頭持續增強。

Importantly, we delivered this bottom line growth while maintaining operating margins near 30%, even as we increased borrower acquisition spending, reflecting strong unit economics and platform efficiency. In addition, the weighted average number of basic shares outstanding declined approximately 14.4% year-over-year, contributing to meaningful growth in earnings per ADS alongside strong net income performance. This reflects our ongoing commitment to capital return through our share repurchase program, which Frank will speak on more in a moment.

重要的是，我們在實現這一底線成長的同時，也保持了接近 30% 的營業利潤率，儘管我們增加了借款人獲取支出，但這反映出強勁的單位經濟效益和平台效率。此外，基本流通股加權平均數年減約14.4%，推動每股美國存託憑證收益顯著成長，同時淨收入表現強勁。這反映了我們透過股票回購計畫對資本回報的持續承諾，弗蘭克稍後將對此進行更多闡述。

At the same time, with net income up 27% year-over-year and only modest growth in total equity, our implied return on equity expanded significantly, affirming the strength and efficiency of our earnings model and our ability to generate high returns on capital while maintaining a conservative balance sheet.

同時，由於淨收入年增27%，而總權益僅小幅增長，我們的隱含權益回報率大幅擴大，肯定了我們盈利模式的實力和效率，以及我們在保持保守資產負債表的同時產生高資本回報率的能力。

Our strong Q2 results reflect consistent execution, improved operational efficiency and resilient asset quality amidst a challenging regulatory and market environment. I'll now hand it over to our CFO, Frank, who will dive deeper into these financial results, provide an update on our capital return strategy and share insights on regulation and growth outlook for the remainder of 2025.

我們強勁的第二季業績反映了在充滿挑戰的監管和市場環境下的持續執行、提高的營運效率和穩健的資產品質。現在我將把麥克風交給我們的財務長弗蘭克，他將深入研究這些財務結果，提供我們資本回報策略的最新信息，並分享對 2025 年剩餘時間的監管和增長前景的見解。

Thank you. Go ahead, Frank.

謝謝。繼續吧，弗蘭克。

Thank you, Noah. It's great to speak with everyone today. Let me provide additional highlights of our profitability metrics, liquidity position, strategic capital allocation and the regulatory environment for the second quarter of 2025.

謝謝你，諾亞。今天能和大家交談真是太好了。讓我進一步介紹我們的獲利指標、流動性狀況、策略資本配置和 2025 年第二季的監管環境。

Financial and profitability measures. Non-GAAP adjusted net income for Q2 reached RMB593.2 million, USD82.8 million, up significantly by 58.3% year-over-year, reflecting strong core profitability driven by prudent expense control and high-quality loan growth.

財務和盈利指標。第二季非美國通用會計準則調整後淨利達到人民幣5.932億元（8,280萬美元），較去年同期大幅成長58.3%，反映出審慎的費用控制和高品質貸款成長推動的強勁核心獲利能力。

Non-GAAP adjusted net income per ADS basically improved significantly to [RMB14.60], USD1.98, representing 85.8% increase year-over-year, underscoring the effectiveness of operational leverage and enhanced profitability per share.

非美國通用會計準則調整後每股美國存託憑證淨利大幅提升至[14.60元人民幣]，即1.98美元，較去年同期成長85.8%，凸顯了經營槓桿的有效性及每股獲利能力的提升。

Return on equity further improved to approximately 27.9% in Q2, increased both sequentially and year-over-year. As Noah mentioned, our improved ROE reflects both core earnings growth and capital efficiency, supported by disciplined equity management and reinvestment.

第二季股本回報率進一步提高至約 27.9%，環比和年比均有成長。正如諾亞所提到的，我們的 ROE 提高反映了核心獲利成長和資本效率，並得到了嚴格的股權管理和再投資的支持。

This demonstrates our continued financial discipline and increased operation efficiency as we scale. Our liquidity remains robust, giving us the flexibility to fund strategic growth initiatives, invest in technology and borrower acquisition and return capital to shareholders, primarily through our ongoing share repurchase program.

這表明，隨著我們規模的擴大，我們繼續保持財務紀律，並提高營運效率。我們的流動性仍然強勁，使我們能夠靈活地為戰略成長計劃提供資金、投資技術和借款人收購以及向股東返還資本（主要透過我們正在進行的股票回購計劃）。

Share repurchase plan from January 1, 2025, through August 15, 2025, X Financial repurchased an aggregate of approximately 16.7 million Class A ordinary shares, including approximately 2.3 million ADS for a total consideration of approximately USD47.7 million under its share repurchase plans.

股份回購計畫自2025年1月1日起至2025年8月15日止，X Financial根據其股份回購計畫共回購約1,670萬股A類普通股，其中包括約230萬股ADS，總對價約4,770萬美元。

The company's previous USD50 million repurchase authorization has been fully utilized. The company now has approximately USD68.2 million remaining under its new USD100 million share repurchase program, which is effective through November 30, 2026.

公司先前的5000萬美元回購授權已全部使用。該公司新的 1 億美元股票回購計畫目前剩餘約 6,820 萬美元，該計畫有效期至 2026 年 11 月 30 日。

This ongoing share repurchase activity underscores our confidence in the company's and this program remains subject to market conditions and regulatory guidelines and our discretion regarding capital allocation priorities.

持續的股票回購活動凸顯了我們對公司的信心，而該計劃仍然受市場條件和監管準則以及我們對資本配置優先順序的判斷的影響。

Dividend update. As part of our semiannual dividend policy, the Board has approved a cash dividend of USD0.28 per ADS, which is equivalent to approximately USD0.0467 per ordinary share. Shareholders of record as of September 26, 2025, will be entitled to receive the dividend and the payments are expected to be distributed on and around October 15, 2025. ADS holders will receive their dividend payments through our depository, the Bank of New York Mellon shortly thereafter with the timing subject to brokerage processing.

股息更新。作為我們半年度股息政策的一部分，董事會已批准派發每股美國存託憑證 0.28 美元的現金股息，相當於每股普通股約 0.0467 美元。截至 2025 年 9 月 26 日登記在冊的股東將有權獲得股息，預計股息將於 2025 年 10 月 15 日左右發放。ADS 持有者隨後將透過我們的存管機構紐約梅隆銀行收到股息，具體時間取決於經紀處理。

Regulatory environment update. The regulatory environment in China continues to evolve, and we remain fully committed to compliance and alignment with the government's policy goals. Recent regulatory guidance from the National Financial Regulatory Administration emphasize responsible lending practice, consumer protection and financial stability, areas where we remain fully aligned.

監管環境更新。中國的監管環境不斷發展，我們仍將全力致力於遵守和配合政府的政策目標。國家金融管理局最近發布的監管指南強調了負責任的貸款實踐、消費者保護和金融穩定，在這些領域我們保持了完全一致的立場。

While evolving regulations may introduce incremental compliance obligations for industry participants, we view these changes positively as they support a sustainable industry landscape and encourage responsible innovation.

雖然不斷變化的法規可能會給行業參與者帶來越來越多的合規義務，但我們對這些變化持積極態度，因為它們支持可持續的行業格局並鼓勵負責任的創新。

We will continue to proactively engage with regulatory authorities ensuring our operations adhere strictly to evolving standards, and we believe our platform is well positioned to navigate those changes while continue to create long-term value.

我們將繼續積極與監管機構合作，確保我們的營運嚴格遵守不斷發展的標準，並且我們相信我們的平台能夠很好地應對這些變化，同時繼續創造長期價值。

2025 growth outlook. Based on current trends, X Financial expects the total return amount facilitated and originated in the third quarter of 2025 to be in the range of RMB32 billion to RMB34 billion. This represents a deliberate moderation from record Q2 levels as management place great emphasis on asset quality and profitability over pure volume growth. The company remains attentive to the challenges and uncertainties from the evolving regulatory environment while maintaining confidence in resilient borrower demand and disciplined execution.

2025年成長展望。根據目前的趨勢，X Financial 預計 2025 年第三季促成和產生的總回報金額將在 320 億元人民幣至 340 億元人民幣之間。這是對第二季創紀錄水準的刻意緩和，因為管理層更加重視資產品質和獲利能力，而不是單純的數量成長。公司持續關注不斷變化的監管環境所帶來的挑戰和不確定性，同時對借款人需求的彈性和嚴格的執行保持信心。

With that, I will hand the call back to our President, Kan Li, for closing remarks.

最後，我將把電話轉回給我們的總裁 Kan Li，請他作最後發言。

Thank you, Frank. As we move further into 2025, we remain confident in our strategic path rooted in robust underwriting practices, prudent risk controls and continued operational enhancements. Our strong financial position and unwavering commitment to long-term value creation give us confidence in our ability to deliver sustained and profitable growth.

謝謝你，弗蘭克。隨著我們進一步邁入 2025 年，我們仍然對我們的戰略道路充滿信心，該戰略道路植根於穩健的承保實踐、審慎的風險控制和持續的營運改進。我們強大的財務狀況和對長期價值創造的堅定承諾使我們對實現持續獲利成長的能力充滿信心。

This concludes our prepared remarks. We will now open the call for questions. Operator, please go ahead.

我們的準備好的演講到此結束。我們現在開始提問。接線員，請繼續。

(Operator Instructions)

（操作員指示）

Randy [Vellachan], NPS Trading.

蘭迪[Vellachan]，NPS Trading。

Hi, there. Congratulations on a good quarter and thank you for the call. I do have two questions. The first one is, can you guys provide some light on the pivot that you've made on providing loan growth at the beginning of the year to switching to asset quality? And then the second question is, do you guys see opportunity to run the company leaner through artificial intelligence? Thank you.

你好呀。恭喜您本季業績良好，感謝您的來電。我確實有兩個問題。第一個問題是，你們能否解釋一下，你們在年初從提供貸款成長轉向提供資產品質的轉變嗎？第二個問題是，你們是否看到了透過人工智慧讓公司更精簡地運作的機會？謝謝。

Sorry, I didn't hear your first question clearly. Can you repeat that, please?

抱歉，我沒有聽清楚你的第一個問題。你能再說一次嗎？

Yes, yes. Can you provide some information or some color on the pivot that you guys have had from providing loan growth or going from loan growth at the beginning of the year and switching over to asset quality as your prioritization?

是的，是的。您能否提供一些資訊或說明，說明您從提供貸款成長或從年初的貸款成長轉向以資產品質為優先事項的轉變？

Okay. I think asset quality has always been our priority no matter what. So I think at the beginning of the year that we provide roughly 30% increase in our scale. I think we maintain our expectation on that. I don't see any significant change from our original expectation. That being said, that asset quality obviously has always been our top priority.

好的。我認為無論如何資產品質始終是我們的首要任務。所以我認為，今年年初我們的規模將成長約 30%。我認為我們對此保持預期。我沒有看到與我們最初的預期相比有任何重大變化。話雖如此，資產品質顯然一直是我們的首要任務。

So based on the environment that we are seeing right now, I think we are paying even more attention to making sure that our -- we are not growing our portfolio just for the sake of growth. But that being said, I still don't see -- we still maintain our expectation that we will likely finish the whole year by reaching that goal. I think that's your first question.

因此，基於我們目前所看到的環境，我認為我們會更加註意確保我們的投資組合不會僅僅為了成長而成長。但話雖如此，我仍然看不到——我們仍然保持我們的期望，我們很可能在全年結束時實現這一目標。我想這是你的第一個問題。

The second one is about the AI application. We have already been leveraging AI largely in our client management space, like the collections, the customer service. So we have already been utilizing AI to replace some of the live agents before. This is -- this will be a continued growth, and I don't see that we will sort of reach the end stage, and this will be an ongoing development from our side. And obviously, we are very interested in developing our AI capability in order to reduce the future cost and this certainly aligned with our profitability goal.

第二個是關於AI的應用。我們已經在客戶管理領域大量使用人工智慧，例如收款、客戶服務。因此，我們之前已經在利用人工智慧來取代一些現場代理。這是——這將是一個持續的成長，我不認為我們會到達最後階段，從我們的角度來看這將是一個持續的發展。顯然，我們非常有興趣開發我們的人工智慧能力，以降低未來的成本，這當然符合我們的獲利目標。

I see. Thank you.

我懂了。謝謝。

I think if I just add one thing, Randy, is we have an investor deck that's been released this last quarter that highlights all the AI capabilities that we're testing internally. So that may be helpful.

蘭迪，我想如果我只補充一點的話，那就是我們有一個投資者平台，已於上個季度發布，其中重點介紹了我們正在內部測試的所有人工智慧功能。這可能會有幫助。

Okay. Thank you.

好的。謝謝。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to Victoria Yu for any closing remarks.

（操作員指示）我們的問答環節到此結束。我想將會議交還給 Victoria Yu 做最後發言。

Thank you, everyone, for joining us today. If you have additional questions, please reach out to our Investor Relations team directly. We appreciate your interest and look forward to speaking with you again soon. Operator, back to you.

感謝大家今天加入我們。如果您還有其他問題，請直接聯絡我們的投資者關係團隊。我們感謝您的關注並期待很快再次與您交談。接線員，回到你身邊。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。