X Financial (XYF) 27 Nov 242024 Q3 Earnings call transcript

Hello, and welcome to the X Financial Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this 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

your Kan available business Frank will financials. call during Financial session. give Officer. Zheng, questions a the from who of Li, go to highlights, will Mr. President; They the followed overview company's Mr. On Mr. Li the and and Q&A are Zheng, Fuya today Mr. answer brief Chief operations all Financial through the are X by

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

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

to introduce my Kan pleasure please is It ahead. Mr. now Mr. Li. Li, go

everyone. Hello,

In quarter, continued loan on significant volumes our to risk We adjust forecast another loan third volume and report a we quality. improvement asset levels. are sequential exceeding promptly based strong with quarter to in pleased the

grow which high. very Non-GAAP further adjusted income quality to acquisition a borrower results. the have reached net continue . bottom improved, Both asset our intensified and the top new As year-over-year. record yielded line positive we efforts,

outstanding due RMB X% sequentially but Specifically our and up originated on down facilitated to total guidance. XX X.XX% X.XX% at for ago. the X.XX% Delinquency end compared and of past X.XX% high a XX front, amount and ago to a XX end billion, respectively, for quarter, of was year-on-year, X.XX%, our to year days the loans all the were to quarter the operational and above days XX% loan rates and XX XXX X.XX% and

this our We through risk optimize asset advanced pleased are we'll to with improvement continue management and system in technology. quality,

September financial the market, improving unveiled Chinese In this year, property at stimulating comprehensive government boosting markets stimulus stabilizing aimed the a and package consumption. liquidity,

boost meaningful the We expect a will macroeconomic recovery. this to provide

part should finance economy, integral the upturn. we personal of the market this serve an As benefit from

We volumes have signs levels. adjusting are the loan already in to line in observed committed and market with risk positive

raising new a XX a the exceed are of in this guidance volume and As favorable billion result our loan RMB monthly record. to we our setting quarter, fourth expect environment,

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

Kan, everyone. billion, I'm and report you, net RMB Total profitability hello, continued and pay strategy was up revenue off. and of that sequentially. XX% balancing Thank growth our X.X year-on-year business XX% to pleased to

high . record up XXX a of sequentially. While X% reached non-GAAP adjusted RMB year-on-year net and income million,

deliver As strong we profitability our in we execute on to full have continue our confidence proven strategy, future. and

our to continue the will semi-annual policy explore our long our more repurchase execute over value under opportunities term. shareholders dividend We to and share to program return

in with revenue expenses, X,XXX stated with increased performance items million, due to for revenue the quarters and net same of same RMB QX. the increased RMB same XXX Now rounded resulting in compared of from from million cumulative in all XXXX, the from up. in expenses I servicing note RMB in in primarily collection period due the and various of facilitated XXXX. Origination would previous XX% period loans to same increased XXX like volume the to the million are numbers Please the of the XXXX, million of of growth by originated and period brief disaggregated RMB period that RMB compared some primarily the XX% effect increase financial by to X,XXX Total XXXX. to

million Borrower was XXX XX% the of XXX RMB period RMB compared income XXX in borrower XXX XXX net the same compared marketing RMB intensified million period the compared and income million with operations was with XXX XXXX. was RMB XXXX. Income RMB primarily same period million million same XXX acquisitions Non-GAAP from of expenses XXXX. RMB in in efforts the by in period increased same RMB to XXXX, million million XXX adjusted with RMB of the from period compared of acquisitions XXXX. to in million Net due of with same

further to For the earnings on website. IR refer release please our financial information,

repurchased share our extended share In we of approximately total for million X.X ADS XX USD until In repurchase end USD consideration Regarding period of repurchase September we March XXXX. XXXX, plan. XXX,XXX further million. of the a the QX, program

approximately repurchase under USD million million for remaining USD plan. the share have potential We XX current repurchase X.X our

we XX, USD million effective share XXXX. XXXX, XX plan announced May in Additionally, repurchase a until November

repurchase in tender X.X to for enhancing under programs value. approximately reflect USD completed a available remaining July million plan. these this XX.X million Together, XXXX X shareholder our Following and offer USD share commitment

business on Now outlook. our

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

today comes [Operator Instructions] ] question Capital. from with Blackbird The Ballista [ Ramsey first

the of wondering you I relative on plan a landscape. be there can to could it return what income if on the as us would company? if program. is as capital regulatory the update update us And to net you And was well, if the

Yes.

-- the that's do return hope percentage programs repurchase our share the dividend ask or the current in Kan and see the with and repurchase, will in current though continue new will That's big have the We would see working beyond to a on terms have program place. do we not to program, we a million about share is regarding our stand. initial [ first we those remaining we enough terms But year, have methods, return of X plan. I payout return. end We to that. by you X prefer dividend share -- will give on do the the continued plan in our share to of much even will our I repurchase you capital. out a normally X true have -- $XX we the to repurchase have If capital not a semi-annual program. we if And place to But question. -- price, hope investor between a I'll ] based the answer of will basis. by percentage in out of year, on this end the repurchase

of has time issue the terms fairly In to end there's management's normally, been stable. regulatory for regulations. that right environment, some rules is the the the is regulation view the of And -- now, the not or government new year it the

seen Chinese expect basically, said, fairly rate. And is any this industry. benefit being have That moment, of development has in we and whole, the do will, active would been we our we significant turn, stable, our think push sort in environment the say fairly not as at that that So in government are we I industry. trying to the a in stimulate industry economy as up to this regulations

That's to moment. from it. why will volume -- at that we this continue that's So grow expect that our

Next Instructions] Bourne [Operator AWH question from comes Capital. Mason with

follow of return this It's on you stock I think see appreciate mean to started on trading Frank, to but results good the just results, that. the the I is of to capital. the wanted alluding earnings. X.Xx and annualize sort if on strong dividend, you on quarter's it up I

share your as income. a be out that if said paying peers, seems I dividend. of you're look at significantly a percentage looking like they're in about low potentially percentage. setting you X.X% at could somewhere a the You're you as But XXs It your of know per paying higher. not earnings

a have could thoughts your that? I would and you you like not more seems it just was lot any hoping So that on consider you pay Do kind of business. affect that.

least only and this able ADS. collect did did to the to were buyback X We we're a able only -- buyback, we we public at public just million year, over about

will -- terms the we and more $X over yes, available to will X.X%. excuse. of as terms you September, will right But to more there do repurchase. Hopefully, rate definitely, after share dividend hopefully, around attract X like before, for to it the $X since exchange available be we issue, our -- money from us like to buyback. told industry do below we like of be almost have would will since except currency the not in will more more Fed But to will above end about that's now -- pay cuts, and share lately right dividend with prices continue the yield, of now So continue, and yes we up I technical we is price we more, yield an attention but whatever in yes,

X%. around yield the keep will We

we adjust buyback, also do And it I Even we do we we we continue buyback an public payout And that will can and to up, -- goes know, will than which terms again, time, over hopefully is do accordingly. at address what every think in as that. valuation yield. by just will I price offering, the itself. of that don't available share stock do, Other attractive else -- possible or whatever, the the rate will that, dividend will

operations. to We focus continue will on the

Just that. if on follow could I up

instituted and it's think The XX% trading think earnings. yield. Xx your X%. I a trade is that now when was -- earnings you're And at that your just though you're peers, peers dividend, some your them of over right, about at X, first Xx it X, difference you around I

buyback X/X can buyback and get you're the so you at limits there just great. I done yes, about know if that's you've the had of the can And you on tangible your get book value, past. in done, that trading

increase the way from maybe re-rate share of eventually price is that? appreciation. then share be a a dividend yield X% help could And so And that sort gets that you increase the you dividend to

Just are positive I returning guys past and you that year. the some know on that's a been there. real capital, over focused thoughts

just and it knocking not discussion. having I'm So

one thing. Just more

In our major the only -- is the volume issue we and face low. is terms very of challenge

willing the even the few thing And a in issue months, so we do up hope in this we we short went the to terms what or first peers do. way, will And our will of In not during buyback. possible last we're like definitely X something we like operation, of last operation, that's can could that something But and more like kind we volume will or low we for buybacks another are like yield point every And talk too open next general, time. That's year period. terms all, big much -- so say. of the turnaround in hopefully, valuation the period the for change. address like I do in years, share in regarding maximum are because, just we we of nothing of X -- out we in year, smooth a

we We on as regarding will Chinese risk best operation, the on environment, our always do, our we'll level but mainly that. definitely mainly based do do or on

can just nothing the But again, for patience. I say once think, I advise things, something other else,

but the I still stock more, for last our years, think X much at is appreciation going up. least maybe

eventually, was I almost this of around going company, Right the true onboard value hope what's we reflects $X. price now. I the when stock be. definitely think it let's and It's But company, see to And stock this believe, will. $X. we was

session. question-and-answer closing I Yu to our the back any remarks. would to conference concludes This for over like turn Victoria

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

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

The conference now has concluded. presentation. attending Thank today's for you

may disconnect. You now