NYSE:XYF X Financial Q2 2023 Earnings Report $13.52 -0.57 (-4.05%) Closing price 03:59 PM EasternExtended Trading$13.54 +0.02 (+0.15%) As of 05:13 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings History X Financial EPS ResultsActual EPS$1.00Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AX Financial Revenue ResultsActual Revenue$168.30 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AX Financial Announcement DetailsQuarterQ2 2023Date8/28/2023TimeN/AConference Call DateTuesday, August 29, 2023Conference Call Time7:00AM ETUpcoming EarningsX Financial's Q2 2025 earnings is scheduled for Wednesday, August 20, 2025, with a conference call scheduled on Tuesday, August 19, 2025 at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by X Financial Q2 2023 Earnings Call TranscriptProvided by QuartrAugust 29, 2023 ShareLink copied to clipboard.Key Takeaways In Q2, total loan originations rose 53% year-over-year to RMB26 billion, with half-year origination amount reaching nearly RMB51 billion, up 55% year-over-year, and outstanding loan balance at RMB45 billion. Q2 net revenue increased 48% year-over-year to RMB122 billion and net income surged 97% year-over-year to RMB366 million, driving net income per ADS up 127% year-over-year to RMB7.62. Asset quality remained strong, with loans 31–60 days past due stable at 0.96% and 91–180 days past due improving to 2.5%, underpinned by enhanced risk management. The regulatory environment is stabilizing after major platform settlements, and X Financial expects ongoing regular supervision while maintaining full compliance and prioritizing consumer protection. The company expanded its US$30 million share repurchase program through September 2024 (US$1.6 million spent, US$7.3 million remaining) and declared a dividend of approximately US$0.17 per ADS. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallX Financial Q2 202300:00 / 00:00Speed:1x1.25x1.5x2xThere are 5 speakers on the call. Operator00:00:00Hello, and welcome to the X Financial Second Quarter 2023 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Victoria Yu. Please go ahead. Speaker 100:00:42Thank you, operator. Hello, everyone, and thank you for joining us today. The company's results were released earlier today and are available on the company's IR website at ir.xiaoyingroup.com. On the call today from X Financial are Mr. Ken Li, President and Mr. Speaker 100:00:59Frank Fuya Zheng, Chief Financial Officer. Mr. Li will give a brief overview of the company's business operations and highlights, followed by Mr. Zheng, who will go through the financials. They are all available to answer your questions during the Q and A session. Speaker 100:01:16I remind you that this call may contain forward looking statements under the Safe Harbor provisions of Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward looking statements. Further information regarding these and other risks, uncertainties and factors is included in the company's filings with the U. S. Securities and Exchange Commission. Speaker 100:02:09The company does not undertake any obligation to update any forward looking statements as a result of new information, future events or otherwise, except as required and allow. It is now my pleasure to introduce Mr. Ken Li. Mr. Li, please go ahead. Speaker 200:02:30Hello, everyone. We are delighted to enter the first half of twenty twenty three with outstanding operational and financial performance in the Q2. We continue to execute our proven strategy and maintain our growth momentum. In the first half of the year, the total non facilitation and origination amount reached nearly RMB50 1,000,000,000, an impressive increase of over 55% year over year. Our top line improved by 30%, while our bottom line nearly doubled in the first half, underpinned by our proven business model, consistent asset quality and optimized operational efficiency. Speaker 200:03:14Furthermore, our net income per basic ADS for the first half of the year grew more than 130% year over year, driven by our robust profitability and dedication to rewarding shareholders through our share repurchase program. During the Q2, our total loan amounts facilitated and originated increased by 53% year over year and 7% quarter over quarter to RMB26 1,000,000,000 in line with our expectations, with the total outstanding loan balance reaching RMB 45,000,000,000 at the end of June, 2023. We continue to strengthen our risk management system to maintain healthy asset quality with the delinquency rate for all outstanding loans past due for 31 to 60 days remaining stable at 0.96% at the end of June 2023. And a book in the infancy rate for all outstanding non past due for 91 to 180 days at 2.5%, significantly improved from a year ago. We are proud of our consistent high quality risk control and stable prime borrower space, which have been well received and recognized by our institutional funding partners. Speaker 200:04:31We will continue to work together to meet the financing needs of consumers and SMEs in support of China's economic recovery. On the regulatory side, with the recent settlement of finance imposed on some large financial platforms by the government, the market believes that the industry wide rate of litigation is expected to come to an end and a more stable regulatory environment is expected. Financial regulatory authorities are now shifting their focus towards regular supervision. As a highly responsible company, we always operate in full compliance with regulations and laws and we will continue to prioritize financial consumer protection. Looking ahead to the second half of twenty twenty three, we are confident in our ability to achieve sustainable growth and enhance shareholder value. Speaker 200:05:25The normal regulatory environment provides a solid foundation of our continued growth and success. We remain committed to executing our share repurchase and dividend program to reward our value shareholders. Now I will turn the call to Frank, which will go through our financials. Speaker 300:05:45Thank you, Ken, and hello, everyone. We are very pleased with our strong financial results for the Q2. Total net revenue increased by 48% year over year and 21% quarter over quarter to RMB122 1,000,000,000. Our relentless focus on tightening cost control and improving operational efficiency enable us to deliver revenue growth that outpaced cost and expense growth. As a result, net income for the Q2 surged by 97% year over year and 29% quarter over quarter. Speaker 300:06:28Refirming our commitment to delivering substantial profits, the positive impact of our ongoing share repurchase program further contributed to our achievements, resulting in a notable noteworthy improvement in net income per share ADS, rising by 127% from RMB3.36 in the same period last year to RMB7.62. To maximize shareholder value, our Board of Directors has also improved, especially given about USD 0.17 per ADS, which is expected to be paid on October this year. Given the stabilized regulatory environment, we expect to achieve a steady growth in both operational and financial performance in the second half of the year, further solidify our position in the market. Now I would like to brief some financial performance for Q2. Please note that all numbers stated are in RMB and rounded up. Speaker 300:07:44Total net revenue increased by 48% to RMB120 1,000,000 from RMB824 1,000,000 in the same period of 2022, primarily due to an increase in the total loan amount facilitated and originated this quarter compared with the same period of 2022. Origination and servicing expenses increased by 26 percent to RMB670 1,000,000 from RMB533 1,000,000 in the same period of 2022, primarily due to the following factors: 1, an increase in commission fee resulting from the increase in total loan amount facility and originated this quarter compared with the same period of 2022 and second, an increase in interest expenses as a result of an increase in payable to the institutional funding partners and investors. Position for the loans receivable was RMB55 1,000,000 compared with RMB32 1,000,000 in the same period of 2022, primarily due to an increase in loans receivable held by the company as a result of the increase in total loan amount facilitated and originated this quarter compared with the same period of 2022. Income from operations was RMB445 1,000,000 compared with RMB194 1,000,000 in the same period of 2022. Net income was RMB366 1,000,000 compared with RMB186 1,000,000 in the same period of 2022. Speaker 300:09:36Non GAAP adjusted net income was RMB 3 65,000,000 compared with RMB211,000,000 in the same period of 2022. For further financial information, please refer to the earnings release on our website our website. Regarding our share repurchase plan, in Q2, we purchased approximately 406,000 ADS for a total consideration of US1.6 million dollars Under US30 million dollars share repurchase plan announced last November, we have approximately US7.3 million dollars remaining for the potential repurchases. Yesterday, our Board approved the expansion of the existing share repurchase program for an additional 12 months until the end of September 2024. Now on our business outlook. Speaker 300:10:36For Q3 this year, we expect the total loan amount facilitated and originated to be between RMB 28,500,000,000 and RMB29.5 billion. For the fiscal year 2023, we expect the total loan amount facilitated and originated to be between RMB105 1,000,000,000 and RMB110 1,000,000,000. This concludes our prepared remarks, and we'd like to open the call to the questions. Operator, please? Operator00:11:14We will now begin the question and answer session. The first question comes from Boyd Hynes with Equinox Capital. Please go ahead. Speaker 400:12:01Hi. I wanted to ask some questions about the current trends that you're seeing among your active borrowers. Can you just talk a little bit about what the average loan size is and what the loan tenure is like among your active group in the second quarter? Speaker 200:12:22Sure. I can answer that question. Our average loan ticket size is roughly about RMB10,000 to RMB15000, it's roughly around that. The average tenure right now is because we offer the loan up to 12 months and the majority of the customers choose 12 months as their application tenure. So our average tenure actually is very close to the amount. Speaker 400:12:55Okay. So if I'm borrowing that amount, am I expected to have repaid that loan fully at the end of that 12 month term? Speaker 200:13:06That is correct. Speaker 400:13:08Okay. And so if I'm a repeat borrower, I'm not just rolling over a principal balance because I couldn't pay the full amount? Speaker 200:13:18No, you can't. Actually, if you are delinquent to that if you are delinquent, we will not remember you are no. Speaker 300:13:28Okay. Speaker 400:13:32So in terms of the current state of the economy and possible pressures on your borrowers. Have you started to adjust your loan provision rates at all? Are you seeing any signs of pullback among your consumer base in terms of the metal loans that they might be wanting to take on? Speaker 200:14:01Actually, the demand has been really has been fairly high for a long time. I think that's why we can keep a momentum of growth. In terms of the provision that you just mentioned that it is our company policies and always review our provision and to make sure that we are free that our provision is coming in line with our risks. So I can't say exact how much that we are adjusting our provision, but our provision has been fairly robust for the past several years. Speaker 400:14:44Okay. I appreciate that the dividend has been put in place and that you're continuing a fairly aggressive share repurchase. I think those are things that should absolutely continue, especially given where the stock is trading. And I hope that I wish you all the best for the rest of the year. Thank you. Speaker 300:15:11Thank Operator00:15:29Okay. Seeing that there are no further questions, this concludes our question and answer session. I would like to turn the conference back over to Victoria Yu for any closing remarks. Speaker 100:15:44Okay. Thank you everyone for joining us on the call today. If you haven't got the chance to raise your questions, we will be pleased to answer them through a follow-up context. We look forward to speaking with you again in the near future. Thank you. Operator00:15:59The conference has now concluded. Thank you for attending today's presentation. YouRead morePowered by Earnings DocumentsSlide DeckPress Release(8-K) X Financial Earnings HeadlinesX Financial to Report Second Quarter 2025 Financial Results on August 19, 2025August 8 at 6:00 AM | prnewswire.comDoes X Financial (NYSE:XYF) Deserve A Spot On Your Watchlist?July 28, 2025 | finance.yahoo.comElon’s Secret Social Security BombshellTo All Americans Born Before April 16th, 1963: Did Trump Just Give The Green Light To Radically RE-DO Social Security? What we just discovered in Washington will stun even the most seasoned insiders.August 8 at 2:00 AM | Banyan Hill Publishing (Ad)X Financial ADR (XYF) Stock Price Today - WSJJuly 27, 2025 | wsj.comX Financial: An In-Depth Look At This Dirt Cheap CompounderJuly 14, 2025 | seekingalpha.comThe total return for X Financial (NYSE:XYF) investors has risen faster than earnings growth over the last three yearsJune 19, 2025 | finance.yahoo.comSee More X Financial Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like X Financial? Sign up for Earnings360's daily newsletter to receive timely earnings updates on X Financial and other key companies, straight to your email. Email Address About X FinancialX Financial (NYSE:XYF) provides personal finance services in the People's Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People's Republic of China.View X Financial ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Dutch Bros Just Flipped the Script With a Massive Earnings BeatIs Eli Lilly’s 14% Post-Earnings Slide a Buy-the-Dip Opportunity?Constellation Energy’s Earnings Beat Signals a New EraRealty Income Rallies Post-Earnings Miss—Here’s What Drove ItDon't Mix the Signal for Noise in Super Micro Computer's EarningsWhy Monolithic Power's Earnings and Guidance Ignited a RallyRivian Takes Earnings Hit—R2 Could Be the Stock's 2026 Lifeline Upcoming Earnings SEA (8/12/2025)Cisco Systems (8/13/2025)Alibaba Group (8/13/2025)Applied Materials (8/14/2025)NetEase (8/14/2025)Deere & Company (8/14/2025)NU (8/14/2025)Petroleo Brasileiro S.A.- Petrobras (8/14/2025)Palo Alto Networks (8/18/2025)Home Depot (8/19/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 5 speakers on the call. Operator00:00:00Hello, and welcome to the X Financial Second Quarter 2023 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Victoria Yu. Please go ahead. Speaker 100:00:42Thank you, operator. Hello, everyone, and thank you for joining us today. The company's results were released earlier today and are available on the company's IR website at ir.xiaoyingroup.com. On the call today from X Financial are Mr. Ken Li, President and Mr. Speaker 100:00:59Frank Fuya Zheng, Chief Financial Officer. Mr. Li will give a brief overview of the company's business operations and highlights, followed by Mr. Zheng, who will go through the financials. They are all available to answer your questions during the Q and A session. Speaker 100:01:16I remind you that this call may contain forward looking statements under the Safe Harbor provisions of Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward looking statements. Further information regarding these and other risks, uncertainties and factors is included in the company's filings with the U. S. Securities and Exchange Commission. Speaker 100:02:09The company does not undertake any obligation to update any forward looking statements as a result of new information, future events or otherwise, except as required and allow. It is now my pleasure to introduce Mr. Ken Li. Mr. Li, please go ahead. Speaker 200:02:30Hello, everyone. We are delighted to enter the first half of twenty twenty three with outstanding operational and financial performance in the Q2. We continue to execute our proven strategy and maintain our growth momentum. In the first half of the year, the total non facilitation and origination amount reached nearly RMB50 1,000,000,000, an impressive increase of over 55% year over year. Our top line improved by 30%, while our bottom line nearly doubled in the first half, underpinned by our proven business model, consistent asset quality and optimized operational efficiency. Speaker 200:03:14Furthermore, our net income per basic ADS for the first half of the year grew more than 130% year over year, driven by our robust profitability and dedication to rewarding shareholders through our share repurchase program. During the Q2, our total loan amounts facilitated and originated increased by 53% year over year and 7% quarter over quarter to RMB26 1,000,000,000 in line with our expectations, with the total outstanding loan balance reaching RMB 45,000,000,000 at the end of June, 2023. We continue to strengthen our risk management system to maintain healthy asset quality with the delinquency rate for all outstanding loans past due for 31 to 60 days remaining stable at 0.96% at the end of June 2023. And a book in the infancy rate for all outstanding non past due for 91 to 180 days at 2.5%, significantly improved from a year ago. We are proud of our consistent high quality risk control and stable prime borrower space, which have been well received and recognized by our institutional funding partners. Speaker 200:04:31We will continue to work together to meet the financing needs of consumers and SMEs in support of China's economic recovery. On the regulatory side, with the recent settlement of finance imposed on some large financial platforms by the government, the market believes that the industry wide rate of litigation is expected to come to an end and a more stable regulatory environment is expected. Financial regulatory authorities are now shifting their focus towards regular supervision. As a highly responsible company, we always operate in full compliance with regulations and laws and we will continue to prioritize financial consumer protection. Looking ahead to the second half of twenty twenty three, we are confident in our ability to achieve sustainable growth and enhance shareholder value. Speaker 200:05:25The normal regulatory environment provides a solid foundation of our continued growth and success. We remain committed to executing our share repurchase and dividend program to reward our value shareholders. Now I will turn the call to Frank, which will go through our financials. Speaker 300:05:45Thank you, Ken, and hello, everyone. We are very pleased with our strong financial results for the Q2. Total net revenue increased by 48% year over year and 21% quarter over quarter to RMB122 1,000,000,000. Our relentless focus on tightening cost control and improving operational efficiency enable us to deliver revenue growth that outpaced cost and expense growth. As a result, net income for the Q2 surged by 97% year over year and 29% quarter over quarter. Speaker 300:06:28Refirming our commitment to delivering substantial profits, the positive impact of our ongoing share repurchase program further contributed to our achievements, resulting in a notable noteworthy improvement in net income per share ADS, rising by 127% from RMB3.36 in the same period last year to RMB7.62. To maximize shareholder value, our Board of Directors has also improved, especially given about USD 0.17 per ADS, which is expected to be paid on October this year. Given the stabilized regulatory environment, we expect to achieve a steady growth in both operational and financial performance in the second half of the year, further solidify our position in the market. Now I would like to brief some financial performance for Q2. Please note that all numbers stated are in RMB and rounded up. Speaker 300:07:44Total net revenue increased by 48% to RMB120 1,000,000 from RMB824 1,000,000 in the same period of 2022, primarily due to an increase in the total loan amount facilitated and originated this quarter compared with the same period of 2022. Origination and servicing expenses increased by 26 percent to RMB670 1,000,000 from RMB533 1,000,000 in the same period of 2022, primarily due to the following factors: 1, an increase in commission fee resulting from the increase in total loan amount facility and originated this quarter compared with the same period of 2022 and second, an increase in interest expenses as a result of an increase in payable to the institutional funding partners and investors. Position for the loans receivable was RMB55 1,000,000 compared with RMB32 1,000,000 in the same period of 2022, primarily due to an increase in loans receivable held by the company as a result of the increase in total loan amount facilitated and originated this quarter compared with the same period of 2022. Income from operations was RMB445 1,000,000 compared with RMB194 1,000,000 in the same period of 2022. Net income was RMB366 1,000,000 compared with RMB186 1,000,000 in the same period of 2022. Speaker 300:09:36Non GAAP adjusted net income was RMB 3 65,000,000 compared with RMB211,000,000 in the same period of 2022. For further financial information, please refer to the earnings release on our website our website. Regarding our share repurchase plan, in Q2, we purchased approximately 406,000 ADS for a total consideration of US1.6 million dollars Under US30 million dollars share repurchase plan announced last November, we have approximately US7.3 million dollars remaining for the potential repurchases. Yesterday, our Board approved the expansion of the existing share repurchase program for an additional 12 months until the end of September 2024. Now on our business outlook. Speaker 300:10:36For Q3 this year, we expect the total loan amount facilitated and originated to be between RMB 28,500,000,000 and RMB29.5 billion. For the fiscal year 2023, we expect the total loan amount facilitated and originated to be between RMB105 1,000,000,000 and RMB110 1,000,000,000. This concludes our prepared remarks, and we'd like to open the call to the questions. Operator, please? Operator00:11:14We will now begin the question and answer session. The first question comes from Boyd Hynes with Equinox Capital. Please go ahead. Speaker 400:12:01Hi. I wanted to ask some questions about the current trends that you're seeing among your active borrowers. Can you just talk a little bit about what the average loan size is and what the loan tenure is like among your active group in the second quarter? Speaker 200:12:22Sure. I can answer that question. Our average loan ticket size is roughly about RMB10,000 to RMB15000, it's roughly around that. The average tenure right now is because we offer the loan up to 12 months and the majority of the customers choose 12 months as their application tenure. So our average tenure actually is very close to the amount. Speaker 400:12:55Okay. So if I'm borrowing that amount, am I expected to have repaid that loan fully at the end of that 12 month term? Speaker 200:13:06That is correct. Speaker 400:13:08Okay. And so if I'm a repeat borrower, I'm not just rolling over a principal balance because I couldn't pay the full amount? Speaker 200:13:18No, you can't. Actually, if you are delinquent to that if you are delinquent, we will not remember you are no. Speaker 300:13:28Okay. Speaker 400:13:32So in terms of the current state of the economy and possible pressures on your borrowers. Have you started to adjust your loan provision rates at all? Are you seeing any signs of pullback among your consumer base in terms of the metal loans that they might be wanting to take on? Speaker 200:14:01Actually, the demand has been really has been fairly high for a long time. I think that's why we can keep a momentum of growth. In terms of the provision that you just mentioned that it is our company policies and always review our provision and to make sure that we are free that our provision is coming in line with our risks. So I can't say exact how much that we are adjusting our provision, but our provision has been fairly robust for the past several years. Speaker 400:14:44Okay. I appreciate that the dividend has been put in place and that you're continuing a fairly aggressive share repurchase. I think those are things that should absolutely continue, especially given where the stock is trading. And I hope that I wish you all the best for the rest of the year. Thank you. Speaker 300:15:11Thank Operator00:15:29Okay. Seeing that there are no further questions, this concludes our question and answer session. I would like to turn the conference back over to Victoria Yu for any closing remarks. Speaker 100:15:44Okay. Thank you everyone for joining us on the call today. If you haven't got the chance to raise your questions, we will be pleased to answer them through a follow-up context. We look forward to speaking with you again in the near future. Thank you. Operator00:15:59The conference has now concluded. Thank you for attending today's presentation. YouRead morePowered by