XYF or X Financial is a fintech company. It has operated that strong operational and financial performance for the Q4 of the past year, with considerable increases in loan facilitation, total net revenue, and net income. The company experienced higher risk levels in asset quality and a rise in crime rates for past-due loans in spite of these gains.
In response to this, to prioritize profitability, X Financial has selected to reduce loan volumes. Throughout this year, the company will continue its conservative approach. It aims for gradual improvement and sustainable profitability. X Financial has also outlined its dividend policy and share repurchase plan. Observers have noted the constraints imposed by thin trading volume.
The earnings call included discussions on regulatory clarity, distinguishing the company from consumer financing firms directly affected by regulations. The earnings call also addressed topics such as the company’s growth outlook, dividend policy, and strategies to enhance shareholder value. This is in spite of the industry’s challenges and external factors like United States-China relations.
The company emphasized its commitment to running the business effectively and highlighted the importance of increasing its stock price above $5 to attract more institutional investors.
X Financial reported a 43% increase in loan facilitation, a 35% rise in total net revenue, and 46% improvement in net income for the fourth quarter of 2023. The company experienced heightened risk in asset quality. This leads to a strategic reduction in loan volumes.
This year, the company will maintain a conservative strategy aimed at gradual improvement and profitability. Amid thin trading volume constraints, X Financial is exploring additional ways to return value to shareholders.
Regulations targeting consumer financing companies do not directly impact the company. To attract institutional investors and possibly revise PR strategy, efforts to increase the stock price above $5 are underway.
Delisting and going private are not considered viable due to government approval requirements.
