Earnings call transcript Q2 2023

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Operator

Hello, and welcome to the X Financial Second Quarter 2023 Earnings Conference Call. All participants are in a listen-only mode. [Operator Instruction]After today’s presentation there will opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Victoria Yu. ahead. go Please

Victoria Yu

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

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

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

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

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

Kan Li

Hello, everyone.

the second outstanding first of with in and to operational financial the delighted performance end half are We quarter. XXXX

strategy and execute our our maintain We proven growth continue momentum. to

over facilitation increase year, amount the of XX nearly year-over-year. origination half and of billion, reached an first the total RMB the loan impressive XX% In

efficiency. half, year to of improved line robust program. operational than proven by rewarding shareholders grew share our quality, our XXX% first year-over-year, basic ADS first model, underpinned and doubled Our our half net the driven bottom the through the for dedication our and per while consistent nearly optimized repurchase asset Furthermore, by income by business our in line top XX%, more profitability

During the with outstanding the by all facilitated line with asset at at management to billion quality, second X% XX XX% healthy XX our stable the In quarter, strengthen our XX for outstanding outstanding loan the improved remaining XX of of originated past balance to ago. quarter-over-quarter and at expectations, year risk increased to days maintain reaching with billion. to our the RMB past rate June due total year-over-year X.XX% we amount delinquency loan due end loan a RMB XXX for from all the XXXX, delinquency days rate X.X%, XXXX. system And for end loans June for XX continue and significantly at to total

control quality We and by borrower of are funding risk prime our our proud which well received high space, and stable partners. recognized consistent have institutional been

of We economic will of work support financing meet SMEs in the to continue consumers needs China's recovery. together and to

government, on come focus Financial settlement is expected regulatory the the the regular end On large environment the is of and stable platforms more believes regulatory the by expected. that fines authorities to market now with financial supervision. imposed an shifting recent a ratification industry-wide their are regulatory side, some to towards

continue compliance responsible operate protection. laws with highly regulations full in will we consumer to prioritize always financial a As and company, and

and of a shareholders. solid our in of dividend share and reward are and foundation executing XXXX, half ability second growth confident The growth remain normal achieve to regulatory continued our environment we the success. to our to sustainable provides valued shareholder ahead our We value. Looking enhance to repurchase program committed

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

Fuya Zheng

and Kan, everyone. you, Thank hello,

XX% by the pleased second strong million. revenue our year-over-year and RMB with to very for results financial Total quarter-over-quarter are XX% We increased quarter. X,XXX net

relentless outpaced efficiency growth. operational growth and enabled on to us the expense deliver tightening that revenue improving and cost Our focus control cost

a our net As for to result, year-over-year profits. XX% reaffirming commitment quarter-over-quarter, income substantial delivering the by and XX% QX surged

ongoing noteworthy repurchase The impact by achievements, X.XX our XXX% our contributed program period net same further rising of in this last per is in of of resulting ADS, year improvement year. from also ADS, our expected the maximize to in in share positive share RMB special income shareholder Board to per has a dividend to be RMB which X.XX value, X.XX. To USD Directors paid improved October a

regulatory our the expect in of the achieve to in growth performance further operational financial market. stabilized we the environment, the Given solidifying position year, and half second steady in both

from in primarily originated facilitated amount and the the of RMB XXXX, of compared period increase XXX financial to the Now, up. by rounded some with million increased and are an note I that million period same RMB Please QX. same would loan brief XX% total stated Total XXXX. like due in X,XXX revenue for quarter RMB in to numbers net performance to all this

Origination RMB as amount XXXX; this increase in the total a to the period institutional increase and result servicing investors. loan and and same XXX resulting facilitated quarter in one, primarily to from partners following from originated compared period XXXX, of RMB the second, million an in by in XXX an interest payable of increased increase to million due factors: in increase the the expenses of with fee XX% same commission funding expenses an

facilitated XX the receivable loan period same an Provision compared for of primarily this as the with compared to in a XXXX, XX loans and result due receivable by period with the loans the million originated XXXX. same the in of RMB company was of increase held total quarter in million amount RMB increase

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

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

for approved plan, our XXXX. X.X USD extension until consideration existing of XXX,XXX an the USD end Regarding Board have million. purchased approximately in repurchase total XX we a million share announced repurchases. the last of Under plan months potential the share repurchase for repurchase September the USD our X.X QX, XX additional program million remaining ADS approximately we of Yesterday, for share November,

outlook. business our on Now,

For QX total expect the we this and year, between and loan facilitated XX.X be billion amount XX.X RMB to billion. originated RMB

billion. be XXXX, RMB originated For we year the RMB between fiscal and the amount billion facilitated loan expect total XXX XXX and to

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

Operator

Capital. [Operator Instructions] The first question [Boyd Heinz] with Equinox comes from

Unidentified Analyst

the questions bit quarter? average about borrowers. a loan the active is tenor is loan and just little what talk wanted about second what you like ask trends seeing size that some current group the you're your active I your to Can the among in among

Kan Li

Sure. I can that question. answer

the loan application -- right months, close roughly about offer and months. XX because size we to tenure, the now average that. and up majority ticket RMB choose to RMB average XX,XXX tenure tenure roughly so XX average our is Our XX the to months XX,XXX. as is It's their The loan around very actually customers of is

Unidentified Analyst

if end fully repaid I to term? have that borrowing the of expected So, that am XX-month at that loan I'm amount,

Kan Li

correct. is That

Unidentified Analyst

Okay.

full over a pay And repeat I'm the amount? just principal balance not a if I because I'm so, rolling borrower, couldn't

Kan Li

you not [indiscernible], can't. amount. you Actually, are No, if your will remember you

Unidentified Analyst

Okay.

Are and pressures pullback your adjust So, in you seeing all? have possible on be started loan to take of loans wanting your on? in to rates borrowers, they terms the any your that terms consumer of the of at signs the provision base of among economy you current state might of amount

Kan Li

been fairly has -- really been has time. high demand the Actually, a long for

think can growth. I keep why that's momentum we of the

just that in review that line is is company sure that with provision our and the that policy In our terms we our mentioned, our to risks. coming of you -- it fully provision make provision are always

much So, are but I how our our fairly past provision several adjusting for that been can't provision, say years. exact robust the has we

Unidentified Analyst

that dividend a the has are continuing place put in that appreciate been and repurchase. share aggressive fairly I you

are of think where the I is the that And that -- rest continue, I for I given trading. should the you the those stock year. wish best hope all things absolutely especially

Operator

for no are this our [Operator back questions, further to Victoria conference question-and-answer Yu concludes the closing Instructions] session. that turn over any to would I Okay. Seeing like there remarks.

Victoria Yu

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

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

Operator

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

may You disconnect. now

Victoria Yu	Investor Relations
Kan Li	President, Chief Risk Officer & Director
Fuya Zheng	Chief Financial Officer

X Financial (XYF) 29 Aug 232023 Q2 Earnings call transcript