Q3 2023 X Financial Earnings Call
Speaker 1: Hello and welcome to the ex-financial third quarter 2023 earnings conference call. All participants will be in the...
Hello, and welcome to the X financial third quarter 2023 earnings Conference call.
All participants will be in listen only mode.
Speaker 1: After today's presentation, it will be an opportunity to ask questions.
After today's presentation will be an opportunity to ask questions. Please note that this event is being recorded.
Speaker 1: Please note that this event is being recorded. I'd like to turn the conference over to Victoria Yoo. Please go ahead.
I would like to turn the conference over to Victoria You. Please go ahead.
Speaker 2: Thank 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.xiao.com. On the call today from X Financial are Ms. Kelly Priten and Mr. Frank Fuyajian, Chief Financial Officer. Mr. Lee will give a brief overview of the company's business operations and highlights, followed by Mr. Jain, who will go through the panel.
Thank you operator, Hello, everyone and thank you for joining us today.
These results were released earlier earlier today and are available on the company's IR website at IR.
Are those all in downtown on the call today from X financial.
Army, Kelly President and Mr. Grenfell, Yeah, Jonas you finish officer.
So we will give a brief overview of the company's business operations and highlights followed by Mr. Zhang who will go through the Q&A shows they are all available to answer your questions during the Q&A session.
Speaker 2: They are all available to answer your questions during the Q&A session.
Speaker 2: I remind you that this column contains forward-looking statements under the recover provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on the management's current expectations and current market and operating conditions.
I remind you that this call may contain forward looking statements and there's the safe Harbor provisions of the private Securities Litigation Reform Act of 1995, such statements are based on the management's current current expectation and current market and operating foundation and relate to events.
Speaker 2: 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.
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 seem to forward looking statements.
Speaker 2: Further information regarding these and other risks, uncertainties, and factors is included in the company's filing with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under the law. It is now my pleasure to introduce Mr. Kent Lee. Mr. Lee, please go ahead. Thank you.
Further information regarding lease and other risks uncertainties and factors is included in the Companys filings with the U S Securities and Exchange Commission.
The company does not undertake any obligation to update any forward looking statements as a result of new information future events or otherwise.
As required and at the mall.
It is now my pleasure to introduce to meet their count leads me to Li. Please go ahead.
Yeah.
Hello, everyone.
Speaker 3: We are pleased to see that our steps strategy continues to deliver strong results in the third.
We are pleased to see them, all and stops with strategy continuing to deliver strong results in the third quarter.
Speaker 3: our known facilitation and origination amount reached the high end of our previous guidance.
Our loan facilitation I know origination amongst reached the high end of our previous guidance.
Speaker 3: and both our top line and bottom line show the substantial year over year.
Under both our topline and bottom line shows a substantial year over year.
Speaker 3: during the quarter as macroeconomic conditions improved moderately and the regulatory environment is treating is here and it is another major problem
During the quarter as macroeconomic conditions improve the moderate today.
Curry environment to stabilize.
Speaker 3: The personal finance business has returned to normal across the industry, resulting in
The personal finance business has returned to normal across the industry, resulting in increased competition.
Speaker 3: As a result, our unit borrower acquisition cost increased quarter over quarter. Our loan delinquencies fluctuated within the historical low to middle.
As a result, our junior to borrower acquisition costs increased quarter over quarter are known delinquencies fluctuating because it would be no historical low to middle range.
Speaker 3: During the third quarter, our total normal amount of acidity and our originality increased by 49% year over year and 14% quarter over quarter to RMB 29 billion.
During the third quarter, our total normal multiplicity.
The increase about 9% year over year, and 14% quarter over quarter to RMB 29 billion.
Speaker 3: with the total outstanding known banners reaching nearly RMB 50 billion at the end of September .
What is the total outstanding non banner Felicia.
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Computers are being an industry leader.
Speaker 3: Our delinquency rates for all outstanding notes past due for 31 to 60 days and the 91 to 180 days were 1.11% and 2.5% respectively at the end of the quarter compared with 0.77% and 2.22% respectively a year ago.
Outstanding loans past due for 31 to 60 day and the 91 to 180 days were one point to one 1% and two 5% respectively.
The end of the quarter compared with corn soybeans and in person on the two point to two person risk excuse me a year ago.
Speaker 3: We have enhanced our efforts to acquire more quality borrowers, but we expect the deliverance rates to continue to fluctuate for some time.
Our efforts to acquire more quality borrowers, but we expected that the new ones that we just continue to fluctuate for some time.
Speaker 3: we will maintain healthy acid quality, leveraging our coordinated risk management.
We will maintain asset quality, leveraging our accordion nature risk management system and are focusing more on asset quality now on expanding their borrower base.
Speaker 3: and focusing more on asset quality than on expanding the borrower.
Speaker 3: Going forward, we will continue to execute our proven strategy and enhance our ability to drive long-term goals and the returns for our shareholders.
Going forward, we will continue to execute execute our proven strategy and enhance our ability to drive long term growth and returns for our shareholders.
Speaker 3: Now, I will turn the call to Frank, who will go through our finish.
I will return the call to Frank who will go through our financials.
Speaker 4: Thank you, Ken, and hello everyone. We are very pleased with our solid financial results in the third quarter. Total net revenue increased by 56% year-over-year and 14.5% quarter-over-quarter to RMB $1,397 million.
Yeah.
Thank you, Ken and Hello, everyone wherever they are pleased with our solid financial results and so quarter total net revenue increased by 56% year over year, and 14, 5% quarter over quarter to RMB 1300 97 million.
Speaker 4: while our net income saw a remarkable 64% year-over-year increase to RMB 347 million. There was a slight decline in quarter-over-quarter. This decrease was primarily attributed to the rising cost of borrowing acquisition and the management asset quality risk.
Our net income so remarkable 64% year over year increase to RMB 347 million.
A slight decline.
Client or quarter over quarter. This decrease was primarily attributed to the rising cost of borrowing acquisition and the management asset quality.
Speaker 4: We remain dedicated to achieving balanced growth in revenue and earnings in the long term, which is clearly a key driver of shareholder value. To achieve this goal, we will take comprehensive consideration of the borrower acquisition costs and risk control based on a close monitoring of market dynamics.
We remain dedicated to achieving balanced growth in revenue and earnings.
In the lungs.
Long term, which is clearly a key driver of shareholder value.
To achieve this goal we will take a comprehensive look consideration of the Boa acquisition cost and the risk control based on the close monitoring all the market dynamics too.
Speaker 4: to ensure that we grow both our revenue scale and profits in a sustainable manner. Now I would like to brief some financial performance for Q3.
To ensure that we grow both our revenues get scale out of pocket in a sustainable manner.
Now I would like to brief you on the financial performance for Q3.
Speaker 4: Please note all the numbers stated are in IMB and round up.
Please note all numbers stated are in RMB.
The round it up.
Speaker 4: Total net revenue increased by 56% to RMB 1,397 million, from RMB 895 million in the same period.
Total net revenue increased by 56% to RMB 1000.
397 million from RMB $895 million in the same.
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Speaker 4: 2022. Primarily due to an increase in the total loan amount facilitated and originally this quarter compared with the same period of 2022.
2022.
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Increase in the total loan amount facility and originally this quarter compared with the same period of 2022.
Speaker 4: Origination and servicing expenses increased by 50% to RMB 811 million from the RMB 540 million.
Total installation and assembly sea expenses increased by 50% to RMB $811 million from the RMB 540.
Speaker 4: $2.5 million in the same period of 2022, primarily due to the increase in borrowing acquisition costs and the collection expenses resulting from the increase in total loan amount of facility and originate this quarter, compared with the same period of 2022.
Finally in the same period of 2022, primarily due to the increase in borrowing acquisition cost and the collections expenses result from the increase in total loan amount to a facility and although Italy this quarter compared with the same period of 2022.
Speaker 4: Provision for the loans receivable was RMB $54 million compared with RMB $17 million 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 of facilities and originates this quarter compared with the same period of 2022. Income from...
Provision for the loan receivable was RMB 54 million compared with RMB 17 million in the same period of 2022, primarily due to a.
Increased loans receivable held by the company.
Result of the increase in total amount of the facility and auto this quarter compared with the same period.
2022.
It can come from.
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Speaker 4: 2023 with IMB 435 million compared with IMB 300 million in the same period of 2022. Net income with IMB 347 million compared with IMB 212 million in the same period of 2022. non-GAAP adjusted net income with IMB 375 million compared with IMB 231 million in the same period of 2022.
2023 was RMB 435 million compared with RMB 300 million same period of 2022.
Net income was RMB 347 million compared with RMB 212 movie in the same period of 2022 now.
non-GAAP adjusted net income was RMB 375 million compared with RMB 231 billion in the same period of 2010.
Speaker 4: For further financial information, please refer to the earnings release on our website.
Two four.
Other financial information please refer the annuities.
The website.
Speaker 4: Regarding our share repurchase plan, in Q3, we repurchased approximately 396,000 ADS for a total consideration of U.S.
Regarding our share repurchase plan in Q3.
We repurchased approximately 396000 it is.
Total consideration over U S.
Speaker 4: 1.7 million. Since the beginning of 2023, we have repurchased an aggregate of approximately 802,000 ABS for a total consolidation of U.S. 3.3 million. We have approximately U.S. 5.6 million remaining for the potential repurchase in our current plan, now on our business outlook.
One 7 billion.
Since the beginning of 2023, we had repurchased and.
Aggregate approximately 802000.
For a total consideration of where you're at.
$3 3 million.
Possibly you asked for $5 6 million remaining for the potential repurchase.
Our current plan.
Our business outlook for Q4. This year, we expect the total loan amount facilitated an originated to be between RMB $26 5 billion and RMB 28 billion.
Speaker 4: For Q4 this year, we expect the total loan amount facilitated and originated to be between RMB $26.5 billion and RMB $28 billion. For fiscal year 2023, we expect the total loan amount facilitated and originated to be between RMB $105.9 billion.
For fiscal year 2023, we expect the total amount of facility and originally to be between RMB 105.9 billion.
Speaker 4: and IMB $107.4 billion. This concludes our prepared remarks, and we'd like to open the call to questions. Operator, please.
And RMB.
174 pillars. This concludes our prepared remarks, and we'd like to open the call to questions operator. Please.
Yeah.
Sure.
Yes.
Operator.
Speaker 1: Yes, we'll now begin the question and answer session. If you'd like to ask a question, please press star then one on your touchtone phone. Going to withdraw your.
Yes, well now begin the question and answer session.
Like to ask a question. Please press Star then one on your Touchtone phone.
I Wonder what brought me here.
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Speaker 1: If you're using a speakerphone, please pick up your handset before pressing the keys. Pause momentarily to assemble the roster.
If you're using a speakerphone please pick up your handset before pressing the keys.
We will pause momentarily to assemble the roster.
Again.
If you have a question. Please press Star then one.
Yeah.
Okay.
Speaker 1: At this time, we have no questions. Let's return the call back to Ms. Victoria Yu for closing remarks.
At this time, we have no questions, let's return the call back to MS. Victoria Yu for closing remarks.
Speaker 5: 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 contact. We look forward to speaking with you again in the near future. Thank you.
Thank you everyone for joining us on the call today, if you haven't got the chance to resale question either be pleased to answer downstream follow up contacts we look forward to speaking with you again in the near future. Thank you.
Speaker 1: Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Thank you.