X Financial (XYF) 22 Aug 242024 Q2 Earnings call transcript

Hello, and welcome to the X Financial Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note today's event is being recorded. I would now like to turn the conference over to Victoria Yu.

Please go ahead.

Thank you, operator. you us thank and everyone, for today. joining Hello, earlier are at available company's results the and released were website The on today company's ir.xiaoyinggroup.com. IR

Kan business Frank will financials. call Financial give Officer. Zheng, a the from who of Li, go highlights, will Mr. President; the followed overview company's Mr. On Mr. Li the and and Zheng, Fuya today Mr. brief Chief operations Financial through are X by

known remind you are factors, from harbor differ the current I and based risks, company's to cause They involve or and actual Securities beyond are market expectations which difficult may available performance Q&A and forward-looking of unknown all to the contain and which are company's or relate your to provisions Act other management's Such XXXX. materially Private many safe this of forward-looking during questions the that the and statements. statements those all answer results, the Litigation predict in the are events operating uncertainties may of Reform current which on statements call to control, session. under that of achievements conditions

Li. the these Commission. any the uncertainties included risks, and law. company's update regarding forward-looking any and please to The obligation Securities and statements is Li, filings under factors my otherwise, is information It as Further Mr. company other does Mr. undertake required with U.S. Exchange in a result as now not Kan of to new or information, future go except events pleasure ahead. introduce

everyone. Hello,

progress another a in profitability. solid our very quarter report as further We are made pleased improving to we

the quarter. to on based bear volumes loan fruit quality asset of management dynamics proactive continued second in Our

the significantly while net income result, reached record quarter year-on-year, our a a loan declined high. As grew and volume for

but sequentially increased The decreased amount RMB XX% billion. and originated to X% XX facilitated year-on-year by total loan

days were XX XX-XX and total ago. a and outstanding X.XX% of X.XX% for quarter, and end X.XX% of XX-XXX the at quarter respectively, due days loans XXXX. for past X.X% was X.XX%, loan balance end ago at the Our year Delinquency and outstanding the billion to a RMB June rates compared and X.XX%

seen our in have our gradually volumes to year-on-year refine loan we we asset volumes, expect As recover quality, second decided improvement loan our management to basis systems asset and to on continue controls on half and to we have Meanwhile, we quality. the strict in will the of a our risk strengthen ease improve year. an

to tactics we this profitability, adapt Our achieve focus flexible to value. employ on and, as remains increase sustainable always, to to and shareholder market conditions evolving

Frank, I turn through the Now to will call our financials. who will go

total everyone. X.X Thank and XX% you, quarter. revenue financial billion, results sequentially. The RMB this Kan, and up hello, XX.X% net strong delivered year-on-year We was

net and share a high in history. our We a continued announced to cost focus income million XXXX, improved and, XX% repurchase we control asset quality RMB and our to million, In program. new grew XXX result, XX% sequentially year-on-year $XX as on a record May

ADS, June was July In to June initiated a X offer XXXX, which XXXX. tender completed purchase in -- million we

ADS price this the to an a buyback, the at which exit and, executed shareholders, We have premium in Company. provided increased are time, pleased to stakes shareholders' same liquidity remaining at seeking

our profitable shareholders. returns to while increase various to further growth, committed exploring are We avenues for

by rounded Now million X,XXX revenue I here stated would financial in increased all like note with disaggregated XXXX. in are of due of net to XX% numbers period up. same million items the in primarily to QX. refer that analysis of of RMB growth revenue. Total brief same compared X,XXX the revenue the to period to performance and for some Please RMB the disaggregation RMB Please XXXX, various from

collection XXXX, primarily expenses, expenses from same resulting XXX same and increase in of RMB million XX% million loans in the of cumulative with period to period service in quarters, facilitated the Origination the previous the increased increased provided RMB compared XXX from the effect of of and the by volume to due XXXX.

period RMB Borrower of X% for marketing XXX primarily receivable in due the XXXX. of the million of in from to acquisitions an the provided in facilitated the volume same loans in cumulative receivable a previous RMB expenses million of the by of to compared was XXXX, held as with Provision the with period the loans effect increased and and increase XX result XXX same of period same million XXXX. loans decreased company compared RMB quarters, by the XX million RMB

XXX compared in with XXX million XXXX. the XXXX. RMB million with Non-GAAP XXX million adjusted period RMB was RMB RMB XXXX. same of of period with in Net RMB same compared income compared same million was net XXX in of XXX was million operations the from million income RMB Income XXX period the

policy Board our on in the this the per For the to a March. half release Pursuant of dividend, and XXXX. information, X.XX respect earnings further our policy, financial IR dividend the has declaration refer payment our of for we provided ADS please to first semiannual website. dividend USD to semiannual authorized of With

please dividend our specific refer For payment release. dates to earning and instructions,

Now outlook. business our on

this billion. remarks, please? call like be to we'd QX expect and year, we to the concludes Operator, open total RMB For facilitated to between prepared This RMB amount billion the XX.X XX loan and and originate questions. our

first from today's with Bourne and Mason Capital. Instructions] question AWH [Operator comes

you're to volumes that guess gives you provided substantial QX. for about what wondered guidance confidence for loan in you growth? start, seeing I I that pretty increase

is That first fairly to is a have -- that why in for think, the place. in the approval X this low risk is has our environment. rate of overall quarters due mostly The our because restrictive management see we system kept you very -- reason because that volume Well, fairly really been I the a low.

that the environment, our current we the better performance policy. have with But optimized approval delinquency especially much

contribute to So -- successfully the to our able new approval see quarters, will are connected also in first significant to customers. channels rate. as a our where said, a That other there's we some in X will we result, increase and they other some being

So confident those our are forecast. that combined volume we with fairly

changed? how that's seeing Could costs you acquisition what Maybe talk customer and about there? you're

terms our of I very think approval overall the is the approval overall, why kept loan our when in That when acquisition has into volume. is been is about the you low, when constant. it, also spending think so low. lower kicked the rate translated -- rate that cost And

spending Now little the translate which the be -- a forecasted. and higher so in rate because into volume QX our our that of is higher will approval will bit the higher and we overall

your that's improve? go the a you seeing are wondered health? maybe allowing So approval really higher you're just seeing in to Or economy. what if is delinquencies it to overall turn rates improving I consumer and

think what And into Yes. I type economy I usually situation don't better before. is overall to But has really dynamics of be been some much this used the in than happens of customers see they turning the that the be those the able they we'll much our cannot because exited marginal customers be better pick okay will those model customers. they have customers. anymore. to -- market customer okay the And separate with be now able to

that's the will place. learning situation, It think in all machine system data. analyze learning is -- I overall automatically our the #X as

will economic as be time our situation that efficiency even by, So management one. risk bad number with the higher. reason goes That is overall

now Those we also that I to we to them, able customers and one channels good us, able weren't but are some our overall good to is, accept get they open to which second specific are customer before from us get customers some as will able The channels. from are mentioned, increase some quality.

be performance better will able X we to our So see than are combine overall that forces, the before.

while Okay. correct? that smaller. Last It like And me. of year-over-year. of what's that that? volumes I up that driving average the doing? down assume is significantly one size driving substantially, that loan Is number your borrowers for What's loan function a is that seems Or means just -- is Is you're something the were active market?

decreased risk our And is in correct. important And I the rate another before, we loan this absolutely management overall besides risk tool average significantly. is which been that loan our is that place, observation mentioned approval very your have implement management. that we size another control in size also the has Well,

when the not we the is size. environment normal So intentionally then will lower good, average

this average So our -- economy can to will contributor will also improving, our overall which grow, another is as contribute the environment which from overall be will as infer size to that the loan as loan you -- volume.

[Operator the back session. turn Instructions] to to Yu Victoria conference I'd for any concludes like question-and-answer And this our over remarks. closing

Thank call you, the today. everyone, joining on for us

we contacts. We If you Thank be near to you. haven't to speaking again them in look got raise chance follow-up the pleased through forward with your to answer you future. a questions, will

Thank today's conference you. This concludes attending for thank We you all call. presentation. today's

lines, and have your wonderful disconnect now may day. You a

Thank you.