Shares in X Financial Gain 6% on Q2 Results
The stock in X Financial (NYSE: XYF) climbed nearly 6 percent to $2.78 per American depositary share Monday after the company posted its financial results for the second quarter.
The Shenzhen-based personal finance company said its net revenues in the second quarter decreased 24 percent to $117.9 million year-over-year. Net income reached $44.2 million, or 27 cents per ADS, nearly level with the same period last year, according to the report.
The company said it has facilitated loans in the amount of 10.2 billion yuan ($1.5 million), at a decline of 9 percent from 1.2 billion yuan a year ago. Compared with the first quarter, it was a 6 percent increase.
The number of loans facilitated, meanwhile, soared 255 percent year-over-year in the second quarter, X Financial said.
"Our business development momentum remains strong with the quality of loans facilitated on our platform improving and financing from institutional investors expanding," Justin Tang, the chief executive officer of X Financial, said in a statement today.
The company said it was in the process of diversifying its customer acquisition channels through partnerships with e-commerce platforms and financial product marketplaces under the softening macroeconomic environment.
X Financial also highlighted its newly launched credit product, Xiaoying Wallet. It said the transaction volume on the app soared to $139 million from $29 million in the first quarter. "Xiaoying Wallet was developed with the needs of our customers in mind and we leveraged our sophisticated big data analysis capabilities and advanced technological infrastructure to offer the best product," Tang added.
The president of X Financial, Simon Cheng, said in a statement, "We are happy to see Xiaoying Wallet is growing in importance as a result of strong demand in the market."
For the business outlook, the company said it expects the total loan facilitation for the third quarter to reach approximately 10.5 billion yuan.
The company's stock price slid 86 percent from its peak of $20.12 apiece in the past year.
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