China's X Financial Q2 revenue falls 56% on lower loan volumes
XYF•Key reported figures
| Metric | Actual |
|---|---|
| Q2 Revenue | RMB 993.58 million |
| Q2 EPS | RMB 1.26 |
| Q2 Adjusted Net Income | RMB 165.84 million |
The stock recently traded at 13 times the next 12-month earnings, versus a P/E of 12 three months ago.
Capital returns and outlook
X Financial repurchased 2.63 million ADSs and declared a semi-annual dividend of $0.28 per ADS.
The company said regulatory uncertainty may materially affect future operating results. It added that it will continue to prioritize disciplined underwriting and conservative capital deployment, while maintaining cost discipline and preserving liquidity amid the evolving regulatory environment.
Borrower contraction and cost control
The company said revenue and profit declines were driven by substantially lower loan facilitation and origination volumes.
President Kent Li said active borrowers fell 74.8% year over year, further reducing loan activity. Lower operating costs and credit-related provisions partially offset the weaker operating contribution.
Q2 revenue and profit fall on lower loan volumes
China's X Financial said second-quarter revenue fell 56% year over year as lower loan facilitation volumes weighed on results.
Adjusted net income and EPS for the quarter also fell sharply year over year, though both improved from the prior quarter.
