XYF - Earnings call transcript Q2 2022

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Operator

Hello and welcome to the X Financial Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. After today’s presentation there will be an opportunity to ask question. Note, this event is being recorded. I would now like to turn the conference over to Tanya Wen. ahead. go Please

Tanya Wen

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

or Mr. to ahead. please events, filings pleasure to U.S. future my forward-looking any and update Mr. statements cause law. forward-looking many may these of Kan obligation current are you X from Frank uncertainties except does session. I who highlights, give those differ company available of the followed other operations Mr. the Chief all and beyond from a this today call new Q&A to Reform information overview It forward-looking current predict Zheng, Further risks, financials. go uncertainties statements the that Li. Li, as results, under which market are the Financial control contain in any which Mr. information, events Securities on related through and of and the President, Fuya statements materially Li the the Kan Private the company's the with Mr. remind company's Act and known included company's Officer. your or factors, Zheng and result of now undertake answer other and Securities by will and the question Provisions that The Harbor operating as achievements based are the or call Financial brief which Such unknown actual XXXX. in measurement's performance, Mr. factors Exchange and are to introduce Li, go will not They difficult to is business a of regarding Safe required Commission. conditions risks, may On involve company's of otherwise, and Litigation statements. under the management's are all is the expectations during

Kan Li

everyone. Hello,

economic pleased this the containment quarter -- past this are the slowdown quarter due challenges in measures our escalation COVID-XX We with to performance significant in and great dealing the China. by posed of

basis, facilitation past on continue asset Total the forecast. effective a scale while volume exceeding rate steady of the quarter during loan our management end We yearly quarter-over-quarter. saw meaningful maintained borrower and to decrease and our in facilitated our up and quarterly provided growth base. to quality high premium from risk quarter. both Thanks the a loan delinquency the previous system improving We

conditions. further business have through We ability navigate our demonstrated to resilience and

of facilitated representing quarter, reached total March loans of amount During for all XX% outstanding due XX, for to billion, as the second in decreased an XXXX RMBXX from and June provided quarter-over-quarter. X.XX% loan X.XX% days XX XXXX. delinquency as past of to our increase XX% XX, The XX year-over-year rates

the quality to macro asset as industry whole headwinds. the financial the deteriorated the While a during of quarter due

managing are to we to improve risk We our as quality system. enhance continue management our asset

the asset quality stable to the We year. of expect half second our in remain

past efforts up high-quality more our the acquire During borrowers. stepped we to quarter,

XX% increased quarter. active quarter both our level on RMBX yearly reached a result, quarterly over and yearly this high in borrowers and As of number million of and basis a a

future for growing a products extensive well that our solid This by pleased it our to see user testament and received laid and growth. reliability, our [indiscernible] foundation are have a We for services to and is been base. has

and and in our and needs micro our of partners will deepen cooperation small diverse consumers Going institutional jointly forward, continuously we funding the businesses serve to expand China. financial with

internet small loan and business, the promote government's management of and the economy of extended initiative consumption. This loan further investment the This the period the businesses. sales us the opportunities and loan commercial and the XX, financial The services overall new XXXX. to June part the services the is extended affirms role the the a regulation, of pandemic to July on of business marketing loan the side, strengthening period rules the efficiency On China by issued more time is Internet improve conductive development credit and Internet stable July it and especially rectification development from grace to explore Banking under the of notice stimulus on more Insurance financial requirements grace regulatory XXXX. give the internet industry revive through encouraging to loan and Regulatory financial quality Commission to for of banks aims stimulate of also to affected for strategy management micro XXXX internet and and operations the new positive refine for clarify the

with accommodative environment, ahead, we expect rebounding, the macro half the about COVID-XX economy Looking in and sequential growth quarters. the increasing subsiding year business upcoming optimistic we second the our pandemic are cautiously see with of gradually an in steady to

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

Frank Fuya Zheng

hello everyone. Kan, and Thank you,

XX% and RMBXXX the to line the environment. stabilized million the with micro-economy net Although slight decrease the quarterly [XXXX] the reduce of increase government for and million, under quarter. quarter adjusted in Net second previous was line representing bottom borrowing of we in the (ph) improved for to of the XXXX with we more as an a from line our previous a the guidance, continue income top from basis, of our borrowers quarter-over-quarter non-GAAP on RMBXXX quarter RMBXXX clear second saw the cost million income regulatory a quarter total improved

see financial in expect We further to in the performance future. improvement

program. During we quarter, the second our repurchase started execute to share

on keep a best returns for Going our maximize revalue to order forward, in market our dynamic, shareholders. we to close cash use regularly how eye will continue

million total RMBXX for from loan expenses million and and sorry. to increased amount the facilitated partially Please RMB primarily in increase due X% RMBXXX facilitation period by services for XXXX. paid insurance a facilitated assets in to provided of in due and of To was in RMBXX some – the compared with total compared from up. period XXXX, note result as this with a XXXX. a the by to operations from million servicing facilitated loan Origination periods contract offset period by receivable quarter performance was of increase total amount receivable for the of of period an compared decreased the receivable quarter the million of RMBXXX in company numbers this was million same a compared provided are brief that in from provided in in Income total amount rounded RMBXXX RMBXXX same of due to Net commission quarter. borrowers RMBXXX increase million in loans provision revenue the receivable period accounts RMBXX RMBXXX compared insurance loans the with Now, second would of same net loans XXXX, the same decrease financial RMBXXX from receivable a XXXX, net the Provision the loan in in in the in I quarter, with partially fees Provision increase same due for period with of the Total with XX% the RMBXXX an held under RMDX same resulting in the from of of was RMBXXX to the to decrease period are of like adjusted million increase million RMB million in to with a compared XXXX. the also the offset increases Non-GAAP income of in I’m all company. same stated increase as XXXX. primarily million result primarily same the primarily facilitation this reversal cost this period borrowing and same fee the in of by total compared and with by same RMBXXX million compared an the million XXXX, to of quarter million RMBXXX average period loan XXXX. and the accounts million income of XXXX. was million loan

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

announced purchase September which in may the million to share approved plan its XXXX XX, up company ETFs on until a plan, form repurchase repurchase under worth our our share ordinary Board A Regarding March of share has Class XXXX. we the of that $XX

June of ETFs. about an average XXX,XXX XXXX, a had end of As repurchased we

for billion. we total facilitated amount of provided quarter third RMDXX loan RMBXX business the Now, for and XXXX expect our to and billion outlook, be between

to XXXX, of year less change. than views, are full the preliminary total facilitated and reflects expect which the increment and amount loan subject be to we forecast our current For in XX%. no provided This

we this for concludes and open questions. Operator, our call the prepared would like remarks Now, please. to

Operator

you. Thank

question-and-answer begin Instructions]. now the will We [Operator session.

ahead. Our Please Mason with first Bourne comes question Capital. AWH go from

Mason Bourne

the about outlook, what's and Thanks start, regulatory evening. like talk given you’re you a for to Could taking Good more questions. driving I little positive commentary the it seems backdrop. that? about guess your

Kan Li

will take this this I take I'll Yeah, one. one --

regulatory think know there’s loans. I lot granting of the just it's of our assessment the demand probably changes right now, COVID-XX than think more Chinese and it's the measures as But more rather a current impact I pandemic. you because COVID-XX the on on economy, the of for of environment

in client So think are to just clientele. premium I and we take right very now, a of customer our advantage good position

that year, benefit quarters our past customers, scale. investment. that the the half is we to this second have so can our why on are in from during we So, going enough accumulated previous three That premium that we increase of

Mason Bourne

Okay.

side funding of things? like your So you rate? is easing of some that's seeing How the funding Are you about conditions it demand allowed maybe to lower sounds strong.

Kan Li

probably do at think based half -- continue. but -- -- our this is year that it's to is rates funding going and the some There will lowering forecasting our that on assessment assessment. for is our more based is on assessment so is temporary the be We second this this short-term, on see of least I and

Mason Bourne

lastly, per buyback? view are attractively know quarter. the you discount? buybacks Okay, your the on then But you I here some I do around tangible as an is to thanks. book your opportunity value share. And this in this RMBXX.XX thoughts did at think What

Kan Li

Frank. to question leave That CFO, going that I'm to our

Frank Fuya Zheng

our bought XXX,XXX thinly, explore maximize we will -- buyback. and for ways we Because so stated, bought to the more Last we actually open we shares something which the window, trade Okay. other -- relevant order do very that, as rules shares, that. allowed the like arise. continue about if we under to of opportunities will buy shares And

Mason Bourne

thanks. Great,

Operator

I over remarks. to back would closing session. ahead. This Tanya like question-and-answer Instructions]. turn Please concludes to any go conference the Wen our for [Operator

Tanya Wen

call you on for everyone us Thank today. joining the

to got again questions, pleased we our you. a raise forward look chance you to [indecipherable] your will haven’t the Thank with in you If near future. be address them speaking through to We contacts.

Operator

The attending conference Thank presentation. for you concluded. today’s is

disconnect. now may You

X Financial (XYF) 10 Aug 222022 Q2 Earnings call transcript