X Financial Q4 Earnings Call Highlights

• Management purposely moderated originations to prioritize portfolio health, with Q4 loans of RMB 22.77 cardinal (down 29.5% YoY and 32.3% QoQ) and progressive borrowers declining astir 20% year‑over‑year arsenic the institution emphasized hazard subject implicit volume.

• Credit metrics deteriorated sharply—31–60 time delinquency roseate to 2.9% and 91–180 time to 6.31%—and the institution took RMB 669.3 million of credit-related provisions, driving Q4 operating income and margins to near‑zero levels versus overmuch stronger anterior periods.

• Regulatory changes, notably "Notice Nine" (effectively imposing a ~24% yearly outgo ceiling for loans and caller whitelist requirements for slope partners), present important uncertainty astir pricing and backing and could materially impair aboriginal results.

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X Financial (NYSE:XYF) said it deliberately slowed enactment successful the 4th fourth of 2025 to stay aligned with evolving supervisory expectations and to prioritize recognition prime arsenic manufacture conditions became much challenging.

President Kan Li said the institution “continued to run with heightened discipline” successful the 4th quarter, noting that aft a beardown archetypal fractional of the year, absorption intentionally moderated enactment successful Q4 to support portfolio wellness and absorption connected prudent hazard absorption alternatively than near-term measurement growth.

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During the quarter, the institution facilitated and originated RMB 22.77 cardinal successful loans, which Li said represented a 29.5% diminution year-over-year and a 32.3% diminution from the anterior quarter. For the afloat twelvemonth 2025, X Financial facilitated and originated RMB 130.6 cardinal successful loans, up 24.5% from RMB 104.9 cardinal successful 2024, reflecting standard achieved earlier successful the twelvemonth contempt the much cautious posture successful the 2nd half.

Operationally, borrower enactment fell successful Q4. The institution served astir 1.69 cardinal progressive borrowers, down 20.2% from a twelvemonth earlier and down 30.7% sequentially. It facilitated astir 2.47 cardinal loans successful the quarter, and the mean indebtedness magnitude per transaction was RMB 9,226. X Financial ended the 4th with RMB 50.5 cardinal successful outstanding indebtedness balance, down 3.6% from the aforesaid play of 2024.

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Li said the institution observed “continued recognition pressure” accordant with broader marketplace trends and a much cautious industry-wide hazard posture. As of Dec. 31, the company’s 31-to-60 time delinquency complaint roseate to 2.9%, compared with 1.85% astatine the extremity of Q3 and 1.17% a twelvemonth earlier. The 91-to-180 time delinquency complaint accrued to 6.31%, compared with 3.52% astatine the extremity of Q3 and 2.48% a twelvemonth earlier.