Q3 2020 X Financial Earnings Call
Good day, and welcome to the X Financial third quarter 2020 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signify a conference specialist by pressing the star key followed by zero after today's presentation. There will be an opportunity to ask questions to ask a question. You may press start then one on your telephone keypad to withdraw your question, please press * then two, please note this event is being recorded. I would now like to turn the conference over to tell you when please go ahead.
Thank you.
Hello everyone and thank you for joining us today. The company's results are released earlier today and available on the company's website. And I also found on the exponential. Mr. And mrs. Jones financial officer will give a brief overview of the content is an operation and highlights for all the biome intelligent will go through the financials. They are all available to answer your questions between the QA section.
I remind you that this call may contain forward-looking statements under the Safe Harbor provisions of the private Securities litigation Reform Act of 1985 statements are based on Management's expectation and the current market and operation operating conditions and relate to events that involve known or unknown risks facilities and other factors of wage 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 off for the information regarding this and other resources. So the t's and factors is included in the company's filings with the Securities and Exchange Commission. The program is off all the people in the obligation to update any forward-looking statement as a result of new information future events, or otherwise except as required under law.
If it's not my pleasure to introduce Mister Dimension researcher, please go ahead.
Hello everyone. It's part of the impact from COVID-19 and the Titan the regulatory environment in China with lived encouraging operational and financial results. Instead sent you to the Saudi the recovery in known for the station amount of showing car loan our total loan for the station amount increased by 34% quarter-over-quarter to RMB 8 billion and the 27 million.
Weekend we continued to receive our prudent risk management approach the delinquency rates for all our stamps notes month. That's our prosecute for 61 to 90 days. And if you want two hundred days, first of September 30th, 2020 decrease the first month through 2.13% and 4.62% respectively compared to 3.53% and 9.4% respectively. June 30th 2020.
That's the pain Danny continues to easy and macro economically viable recovered gradually in China our credit risk profile continues to improve.
Sounds a solid progress we have made on the operation of grand. We improve both our top and the bottom line.
Our total net revenue increased by 40.3% and the net loss contribute contributable to exponential shareholders money to RMB.
113 million from 343.7 million in the previous quarter
Demonstrating I was drunk head to the ability to navigate in an uncertain regulatory environment and a challenging economy.
The August 2020 the spring People's Court of PRC load ceiling of the private lending interest rate protected by law.
We believe these new policies currently only applicable to price Landing which mainly refers to long as two individuals or companies by private organizations or individuals instead of financial institutions.
The regulations are put pressure on the whole nineteen sector, but it's not directly applicable to our business and this moment we are open an institution regulated by local Financial regulatory Authority.
Recently the Chinese government also planned to improve.
impose tighter regulations on small loan offered online pack macaron companies
The regulator is have started thinking public opinion on the injury that just for the administration of online Simone and in business.
The effect fundamentals of alignment and easy street with requirements or limits spend an average for a few days prohibited provision of multiple multi-regional ending and other matters.
It is expected that the new reputation will be finalized by the end of this year due to the no visibility caused by the reactor regulatory assessment piece is it is faith will companies in this sector to precisely evaluate the impact on the business at this moment. But today we are need to adjust strategies and a pretty substantial changes to to to the operations over traditional all the transitional period of one two, three years to comply with the rule policy wage, despite all the channels your head. We will continue to expand and improve our offerings to cater to the growing demand for personal financing in China. We are on the tracks to apply for Align microcredit license and the way I'll keep a close watch on the volume up to dynamically and the regular table.
We have experienced reforms and navigate the physical appearance before and emerging stronger as a key players in this.
Industry we are confident that we are capable of making strategic adjustment in a timely way to fit into the new business in one.
During the third quarter we continue to expand our cooperation with financial institutions in the third quarter. We successfully achieved hundred percent institutional fending off but a new loan for our platform compared with ninety 97.4% in the previous quarter both the total package and the number of financial institution is Partners have continued to expand our risk management capability and The Proven record have been fully recognized by birth or financial institutional partners.
Oh, actually the from the business have progressed in an orderly manner the outstanding balance of business continue to decrease from R&B 1.6. Jim said his 2022 R&B 0.4 billion as of September 15th 2020 and the further degrees to R&B is 0.3 billion. October 31st, 2020 protecting the interests of our investors is always our top priority and it will give you to help us minimize regulatory risk and establish the foundation of trust and integrity in the personal finance director.
During the Civil Court number of continued to Grouse to 690 2997 representing an increase of 10.8% from 625000 and 7 and the 707 in the previous quarter mainly due to an increase in the numbers of activity boroughs of showing off a law. This is this is this is further acknowledgement of high value on the quality of the loan products. We offer two problems subscribers the tracking and cost money. We gave us back to continue to gradually recovered.
overrode we will continue to strengthen our Corporation under the datasheet we Spanish is fusions and keep our institutional finding sources with China's dead and intimidation our favorable policies to support a domestic consumption we are confident always accusing capability to create a long-term value for our money to send to shareholders send the code to friend who are those our financials
We're pleased to have a seen gradual recovery during the so-called thanks to the overall improving market conditions and all our continuous efforts to enhance the top language and to reduce the cost across the various parts of our business will continue to constrain our risk management capabilities and the folks expanding the quality of our base wage, but the improvement in our culture risk profile has bought a significant decrease of 56.3 million in the bad debt Provisions for accounts payable and receivable in the third quarter when compared with the previous quarter together with other cost Cost Plus control measures, we successfully narrowsburg their loss for the quarter so far into the into the first quarter. We are seeing more of the side on the bottom side as of October 31st 2020 wage.
the delinquency rates
For all often loans that are attached to for the 31 to 90 days and the two hundred ninety one page one hundred eighty days for the drop to 1.94% And the three point three point eight four percent respectively and outstanding performance showing a high effectiveness of all the risk and control model and the increase in the quality of our borders in addition our efforts to expand and deepen our cooperation with the financial institution of products offered to you to their food the total number of financial institutions, which we cooperate with continue to increase during the third quarter and and the same time. We also managed to reduce the overall funding costs in this quarter. We will continue to engage with more financial institution to further optimize our cost structure. And in the meantime, we confirm
You to diversify our Partnerships with third-party Financial guarantee companies in conclusion. We will continue to closely monitor regulations and market conditions off in sure we will add that quickly in response to any potential impact our business due to change in the micro-environment. In addition. We will continue to provide a more active loan products further improve the quality credit quality of a barrel race and the Explorer additional cooperation opportunities with the financial institution. So cash and tapped goes in the personal finance industry now, I would like to pray for some financial performance for the service for the 23rd for the third quarter 2020 total net revenue decreased by 34.5% to 559.8 month.
About a US 82.5 million from 854.3 million in the same period of 2019 primarily due to the client and the total long first facilitation amount in this quarter when compared with the same period of 2019.
origination at the servants expense increased by 19.9% to RMB 561.2 million about
U.s. Dollar, eighty two point seven million from 9468.2 million in the same period of 2019 primarily due to the fact factors when increase in collection expenses resulting from a more active policy taken to address the impact of planting and a 2000 increasing expressed interest expenses relate to the finance financing company position for accounts receivable and the contracts and assets decreased by 71.2% to Ivy 24.3 million rather US Dollars three point six million from IMB 84.7 million volt the same period of 2019 primarily due to the combined effects of
What?
Decreasing accounts receivable and the country asset as a decrease in the estimate before rates position for the long receivable was fine B, fifty six point 1 million about eight point six million us compared with I be three point nine million in the same period of 2019. I'm really do to English long receivable from credit loans and the revolving-door net loss attributable to the X Financial shareholders with 813 billing. I'm be about sixteen point six million compared with net income attributable X Financial shareholders of fact, I am d when hundred sixty nine point six million in the same period of 2019. I finally business given the ongoing dead.
It's a week changes. All Marketplace are taking more prudent risk management approach and the and the company is in the process of reassessing its institutions operators based on the company preliminary assessment assessment. The deposit paid to its institutional coverage are subject to the impairment risk-off consequence of the company is unable to reasonable determine and yet an hour for a business now this concludes our prepared remarks, and we would like to place a call to the question operator, please thank you. We will now begin the question-and-answer session touch-tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys to withdraw your question, please press * then two. Yep.
We will pause momentarily to assemble our roster.
again, if you have a question, please press * then 1
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Showing no further questions at this time. This concludes our question-and-answer session. I would like to turn the conference back over to Tanya went for any closing remarks.
And here is the one on the court date. If you haven't got the chance to raise your questions, will you please answer your contacts? We look forward to speaking with you again in the near future.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.