Q4 2024 X Financial Earnings Call
After todays presentation, there will be an opportunity to ask questions.
Speaker Change: To ask a question you May press Star then one on a touchtone phone.
Speaker Change: To withdraw your question. Please press Star then two.
Speaker Change: Please note this event is being recorded.
Speaker Change: I would now like to turn the conference over to Victoria. Please go ahead.
Victoria: Thank you operator, Hello, everyone and thank you for joining US today. The company's results were released earlier today and available on the company's IR website.
Victoria: They are showing and those are in Brookdale com on the call today from accident answer is Mr. Frank <unk>, Chief Financial Officer, Mr. Jim will give a brief overview of the Companys business operations and highlights go through the financials and then answer your questions. During the Q&A session I would now.
Speaker Change: Menu that this call may contain forward looking statements and the safe Harbor provisions have private Securities Litigation Reform Act of 1995.
Speaker Change: Such statements are based on management's current expectations and current market and operating foundation and relate to events large likely 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.
Speaker Change: <unk> actual results performance or <unk>.
Speaker Change: Humans to differ materially from those in the forward looking statements.
Speaker Change: Information regarding lease and other risks.
Uncertainties and factors is included in the company's filings 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 the new information future events or otherwise except as required under law.
It is now my pleasure to introduce Mr. Kratz reaction Mr. Jeong. Please go ahead.
Speaker Change: Hello, everyone. We are pleased to start 2020 pool with a solid financial performance in the first quarter, we continued to implement our strategy of <unk>.
Speaker Change: Julie and dynamically adjust to meet loan volumes based on close monetary asset quality dynamics.
Speaker Change: With regard to effectuate.
Securities our probability.
Speaker Change: Results, despite a year over year quarter over quarter decline in the <unk>.
Loan volume, both top and bottom lines.
Speaker Change: On a yearly or quarterly basis with notable improvements in pockets.
Speaker Change: In the first quarter, the total loan amount facility originally.
Speaker Change: <unk> decreased 11% year over year, and 18% quarter over quarter two.
Speaker Change: The RMB 22 billion in line with our guidance our total outstanding loan balance was RMB 44 period.
Speaker Change: At the end of March 2024.
Delinquency rates for the all certainly loans past due for 30 to 60 days.
Speaker Change: <unk> 91 to one.
Speaker Change: <unk> 80 or 80 days.
Speaker Change: Six 1% and $4 seven.
Speaker Change: 7% we.
Speaker Change: Respectfully.
Speaker Change: At the end of the quarter compared with the woman.
Speaker Change: Zero, 5% and two 4% a year ago.
Speaker Change: The increasing overdue loans.
Joe with total Australian loss is primarily due to lower outstanding loan balances.
Speaker Change: This quarter.
Speaker Change: As a result.
Speaker Change: They will control over loan facilitated and originated.
Speaker Change: We initially in the first quarter of last year.
Speaker Change: Excluding the impact of the reduced loan volume asset quality began to stabilize during this quarter.
Speaker Change: And they committed to clothing quantity follows suit.
Speaker Change: The entire credit cycle, continuing stream, our risk control system and the <unk>.
Speaker Change: All necessary measures to mitigate risks.
Speaker Change: In the first quarter total net revenue was RMB, one 2 billion up 20% year over year.
Speaker Change: And the 1% quarter over quarter, despite the decline in the loan volumes.
Speaker Change: Thanks to our strict risk controls and improved operational efficiency net income increased by 28% year over year at 92% quarter over quarter to RMB $363 million.
This once again demonstrates the effectiveness of our strategy.
Speaker Change: Strong execution and the commitment to ensuring long term profitability.
Speaker Change: Beginning this quarter, we've combined the Bordeaux acquisition cost some origination and servicing expenses.
Speaker Change: Indirect expenses from the borrower acquisitions some of the general and administration expenses in the sales and the marketing expense due to the acquisitions and the work streams finished with total operation.
Speaker Change: Cost and expenses to provide a clear breakdown over the company expenses for the Investor.
Speaker Change: Going forward, we will continue to implement epic corrugate wide open.
Speaker Change: Open than that.
Speaker Change: Acquisition costs to drive a sustainable profitability.
Speaker Change: We are confident in our future profitable growth.
Speaker Change: Stabilized asset quality, we have a clear clear visibility on the loan volume for 2024.
Our current strategy and expect the total loan amount facility and originate.
Speaker Change: The full year to be around RMB 100 billion.
Speaker Change: Our commitment to sustainable profitability and shareholder value creation is unwavering.
Our board of directors has authorized a new program.
Speaker Change: The purchase up to $20 million worth of our shares which will be effective from January one 2024.
Speaker Change: Remember 32025.
Speaker Change: We are confident.
Speaker Change: Our position as a public company and will drive long term long term returns for our shareholders.
Speaker Change: Now I would like to.
Speaker Change: For you for some financial performance for the Q&A. Please note that all numbers stated.
Good.
Speaker Change: RMB and longer.
Total net revenue increased by 20% to RMB.
Speaker Change: 1208.
Speaker Change: 8 million from RMB, one 5 million in the same period of 2000.
Speaker Change: 'twenty three.
Speaker Change: Primarily due to growth in this.
Speaker Change: Aggregate revenue compared with the same period of 2023.
Speaker Change: Pleased with further analysis of this.
Speaker Change: Integration of the revenue.
Speaker Change: Origination and servicing expenses increased by 15% to RMB 200 or $427 million.
Speaker Change: From 371 million in the same period of 2023, primarily due to the increase in the collection expenses, resulting from the <unk>.
Speaker Change: The cumulative effect of increased volume of loan facility and the provider.
In the previous quarters compared with the same period of 2023.
Speaker Change: Our acquisitions and our marketing expenses decreased by 9% to RMB 248 million from RMB $272 million in the same period of 2023, primarily due to the decrease in the.
Speaker Change: Lower acquisition costs compared with the same period of 2023.
Speaker Change: Provision for the loan proceeds receivable was RMB 63 million compared with RMB 20 million in the same period of 2010.
Speaker Change: Primarily due to an increase in loans receivable hold it by the company as a result of the.
Speaker Change: Accumulative effect of increased volume the loan facility and the provider is peerless quarters compared with the same period of time.
Speaker Change: Income from operations was RMB 377 million compared with RMB 320 annually in the same period.
Speaker Change: Net income was RMB 363 million compared with RMB 284, maybe in the same period of 2000.
Speaker Change: Got it.
Speaker Change: non-GAAP adjusted net income was RMB 300 planes, when we can compare with us.
Speaker Change: 307 million in the same period of 2000 and Tennessee.
Speaker Change: For further financial information please refer to the earnings release.
Speaker Change: Our website now.
Speaker Change: Our <unk> business.
Speaker Change: Business outlook.
Speaker Change: For Q2 this year, we expect to Hulu amongst facility and originated.
Speaker Change: Between RMB 23 billion.
RMB 24 5 billion.
Speaker Change: For the full year 'twenty 'twenty four we expect the total.
Speaker Change: Facility originated could be between RMB 90 billion to RMB.
Speaker Change: As you turn period. This concludes our prepared remarks, and we would like to open the call to questions operator. Please.
Speaker Change: We will now begin the question and answer session.
Speaker Change: To ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Okay.
Speaker Change: Once again, if you would like to ask a question. Please press Star then one to enter the question queue.
Speaker Change: Star then one to answer the question queue.
Speaker Change: The first question today comes from Nathan born with AWH capital.
Speaker Change: Please go ahead.
Speaker Change: Alright, thanks for taking the question.
Nathan: One I hope you could talk about.
Nathan: What are you seeing in the Chinese economy, and how it is related to a loan volumes.
Nathan: Your outlook for the rest of the year.
Nathan:
Speaker Change: Overall Chinese economy still.
Speaker Change: Facing a lot of the challenges.
Speaker Change: You know.
Speaker Change: In contrast to the U S.
The inflation environment that we are sort of in the.
Deflation environment.
Overall for the overall.
Speaker Change: Generally overall for the loan.
Speaker Change: Demand is.
Speaker Change: With stable or a little bit.
Speaker Change: If you if we look at the order.
Speaker Change: First quarter financial reports from the or the Chinese major bank debt or debt.
Speaker Change: Loan volume.
Speaker Change: Income and deposit or down a little bit. So we are live.
In that kind of environment, but the four hour demand I think mainly it is.
Speaker Change: Risk risk factor.
Speaker Change: We are.
Speaker Change: As you know still no.
Our overall loan portfolio.
Speaker Change: Elevate that collateral.
For the week.
Speaker Change: We kind of are in.
Speaker Change: In the first quarter will kind of stabilize that situation.
But I hope you could talk about.
Speaker Change: The technical or there's a little bit of improvement compared with the fourth quarter last year, but still.
Speaker Change: What are you seeing in the Chinese economy, and how it is related to a loan volumes and your outlook for the rest of the year.
Speaker Change: Elevated level so that is.
Speaker Change: I think that was the main factor instead of an economic environment through the spring.
Speaker Change:
Speaker Change: Overall Chinese economy still faced.
Speaker Change: Everybody in our sector.
Speaker Change: Facing a lot of the challenges.
Uh huh.
Speaker Change: Cautious too to expand loan.
Speaker Change: Contract to the U S visa inflation.
Speaker Change: Liam.
Speaker Change: Environment that we are.
Speaker Change: A question right away.
In the.
Speaker Change: Some kind of a pressure for the.
Speaker Change: Deflation environment.
Speaker Change: So overall for the overall <unk>.
Speaker Change: The loan quality, that's going to input.
Speaker Change: Generally overall for the loan.
Speaker Change: In fact I believe.
Speaker Change: Demand is stable.
Speaker Change: Okay. Thanks, and then.
Speaker Change: Stable or a little bit decline.
Speaker Change: I was hoping you could also talk about the regulatory environment.
Speaker Change: If you if we look at the other first quarter financial reports from all the Chinese major bank debt or debt.
That going forward.
Speaker Change: Regulatory around out there, but not much.
Speaker Change: Loan volume.
Speaker Change: New development.
Speaker Change: The income and the profit oil.
Speaker Change: This quarter.
Speaker Change: A little bit so we are live.
Speaker Change: As you know just.
Speaker Change: Just basically.
Speaker Change: In that kind of environment, but the four hour demand I think is mainly.
Speaker Change: Stable situation is.
Speaker Change: No much news coming out.
Speaker Change: Risk risk factor.
Speaker Change: Criticized.
Speaker Change: As you know still stay now.
Speaker Change: Thank you.
Thanks.
Speaker Change: Our overall loan portfolio.
Speaker Change: As a reminder, if you would like to ask a question. Please press Star then the one to join the question queue.
Speaker Change: Elevate that collateral.
Speaker Change: But are we.
Speaker Change: We kind of in.
In the first quarter will kind of stabilize that situation.
Speaker Change: That's star then one to ask a question.
Speaker Change: Techniques a lot there is a little bit of improvement compared with the fourth quarter last year, but they're both still on.
Speaker Change: Okay.
Speaker Change: Elevated level so that.
Speaker Change: It appears there are no further questions at this time.
Speaker Change: I think that the main factor that instead of an economic environment through the spring.
Speaker Change: I'd like to turn the call back over to Victoria for any closing remarks.
Speaker Change: Everybody.
Speaker Change: The sector are cautious to to expand loan.
Speaker Change: Yeah.
Victoria: Thank you everyone for joining us on the call today, if you haven't got a chance to retail questions. We'll be pleased to answer that just to follow up contacts.
Speaker Change: Volume.
Speaker Change: More aggressively.
<unk>.
Speaker Change: Some kind of a pressure.
Speaker Change: Lamar to speaking with you again in the near future. Thank you.
Speaker Change: <unk>.
Speaker Change: The loan quality.
That's the main factor I believe.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Okay. Thanks, and then.
Speaker Change: You can also talk about the regulatory environment, how you view that going forward.
Richard Taylor: Richard Taylor.
Richard Taylor: Not much.
Speaker Change: New development.
Speaker Change: This quarter.
Speaker Change: <unk>.
Speaker Change: Just basically.
Speaker Change: Stable situation is.
Speaker Change: Not much news kind of coming out.
Speaker Change: Reticulocyte.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: Thanks.
Speaker Change: As a reminder, if you'd like to ask a question. Please press Star then one to join the question queue.
Speaker Change: Thats Star then one to ask a question.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: It appears there are no further questions at this time.
Speaker Change: I'd like to turn the call back over to Victoria for any closing remarks.
Speaker Change: Yeah.
Victoria: Thank you everyone for joining us on the call today, if you haven't got a chance to raise your questions. We will be pleased to answer that.
Victoria: <unk> context, and look forward to speaking with you again in the near future. Thank you.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[music].
Speaker Change: Sure.
Speaker Change: With.
Speaker Change: With regard.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: With regard.