What guidance did X Financial's management provide for the next earnings period?

What is X Financial's gross profit margin?

What factors drove the changes in X Financial's revenue and profit?

What does X Financial do and what are its main business segments?

What were the key takeaways from X Financial's earnings call?

What were the key takeaways from X Financial’s earnings call?

What is the market's earnings forecast for X Financial next quarter?

What is X Financial's latest dividend and current dividend yield?

- **Resilient Revenue Amid Regulatory Headwinds**: Q3 net revenue RMB 1.96 billion (+23.9% YoY) despite 13.7% QoQ decline, driven by prudent risk management and disciplined execution.
- **Elevated Delinquency Rates**: 31-60 day delinquency at 1.85% (vs. 1.02% YoY), reflecting broader macroeconomic stress and tighter underwriting.
- **Shareholder Returns**: RMB 67.9 million in buybacks with RMB 48 million remaining under $100M program; dividend sustainability maintained at $0.28 per ADS.
- **Cautious Outlook**: Q4 loan origination guidance RMB 21-23 billion, with management anticipating stabilization of delinquency rates in 1-2 months.

**【CEO Summary Section】**
- **Moderated Growth Strategy**: Q3 2025 loan origination of RMB 33.64 billion (+18.7% YoY, -13.7% QoQ) reflects intentional slowdown to prioritize risk management and asset quality. Sequential decline in active borrowers (-14.4% QoQ) aligns with prudent underwriting.
- **Revenue Resilience**: Total net revenue RMB 1.96 billion (+23.9% YoY, -13.7% QoQ) demonstrates operational discipline amid softer market. Credit delinquency rates rose (31-60 days: 1.85%, 91-180 days: 3.52%), driven by macroeconomic stress and tighter underwriting.
- **Operational Enhancements**: AI-driven analytics, streamlined borrower experience, and collection infrastructure improvements support long-term stability.

**【CFO Financial Commentary】**
- **Financial Performance**: Q3 net income RMB 421.2 million (+12.1% YoY, -20.2% QoQ) with Non-GAAP adjusted net income RMB 438.2 million. Return on equity 21.5% highlights capital efficiency despite regulatory headwinds.
- **Balance Sheet Strength**: Total assets RMB 14.69 billion (+26.4% YoY), cash reserves RMB 1.55 billion. Share buybacks of RMB 67.9 million (with RMB 48 million remaining under $100M program) signal confidence in long-term value.
- **Q4 Guidance**: Loan origination expected RMB 21-23 billion, full-year RMB 128.82-130.8 billion. Management anticipates stabilization of delinquency rates within 1-2 months but warns of ongoing regulatory impact on margins.

**【Q&A Key Highlights】**
- **Regulatory Environment**: China's focus on consumer protection may suppress industry profitability, with take rate facing material negative impact. X Financial maintains compliance-first approach, reducing loan volumes to mitigate complaints.
- **Delinquency Trends**: Delinquency rates likely to remain elevated due to macroeconomic stress, with stabilization expected in 1-2 quarters. Tightened underwriting for higher-quality borrowers aims to mitigate long-term risk.
- **Capital Allocation**: Buybacks and dividends remain key return channels. Despite depressed valuation, management prioritizes disciplined buybacks and dividend sustainability over aggressive share repurchase programs.
- **Funding Partners**: Stable relationships with institutional partners, no material funding disruptions. Funding costs stable QoQ but elevated YoY, with potential normalization as regulatory clarity emerges.

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