X Financial's Q1 2025 Earnings Call: Unraveling Contradictions in Share Buybacks, Loan Growth, and Regulatory Challenges

Share repurchase strategy, loan volume growth, regulatory landscape and adjustments, loan volume and growth strategy, and customer acquisition costs are the key contradictions discussed in X Financial's latest 2025Q1 earnings call.



Loan Origination and Growth:
- X Financial facilitated RMB35.15 billion in loans in Q1 2025, marking an 8.8% sequential increase and 63.4% year-over-year growth.
- The growth was driven by solid borrower demand and disciplined risk management, along with strategic partnerships and enhancements in technology and underwriting models.

Revenue and Profitability Expansion:
- Total revenue reached RMB1.94 billion, up 13.4% from Q4 and over 60% year-over-year.
- The increase in revenue was primarily due to higher borrower volumes and originations, reflecting the company's improved operational leverage and disciplined expense management.

Asset Quality and Risk Management:
- The 31 to 60-day delinquency rate improved to 1.25%, a 22% year-over-year reduction, and the 91 to 180-day delinquency rate decreased to 2.7%, a 37% year-over-year reduction.
- This improvement was attributed to disciplined borrower screening and underwriting practices, as well as initiatives to enhance borrower engagement and repayment behavior.

Regulatory Environment and Compliance:
- X Financial remains committed to compliance and aligning with regulatory policies, with a focus on responsible credit assets and financial stability.
- The company is actively engaging with regulators and preparing for upcoming regulatory developments, including potential changes in the loan pricing paradigm.