The following is a summary of the X Financial (XYF) Q4 2023 Earnings Call Transcript:
Financial Performance:
X Financial reported a 43% increase in facilitated and originated loans in 2023 compared to last year, contributing significantly to revenue growth.
Total net revenue saw a 35% spike annually, income from operations rose by 33%, and the net income showed a 46% improvement.
The total loan amount for Q4 2023 was RMB 26 billion, marking a 20% annual increase but an 11% quarter-over-quarter fall.
Delinquency rates shot up to 1.57% for loans overdue by 31 to 60 days and 3.12% for 91 to 180 days by the end of the quarter.
Business Progress:
X Financial scaled down loan volumes in Q4 2023 in response to rising risk levels in asset quality, with a focus on profitability over volume growth.
The company introduced measures to mitigate risk and adjust the business model to ensure profitable sustainability.
The strategic plan for 2024 aligns with market conditions in China and is geared towards caution.
The company aims to return value to shareholders, expecting to pay dividends when profits and operations allow. In Q4, the company repurchased 36,000 ADS for US$143,000 with another US$5.5 million slated for potential repurchases.
Plans to strengthen risk management systems to improve asset quality and balance revenue and profitability growth are being put in place for Q1 2024, with a loan target set to between RMB 21 billion and RMB 22.5 billion.
Other notable strategies include improving the company's visibility and stock value, ramping up news releases and roadshows once the stock price amasses $5 consistently.
More details: X Financial IR
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