X Financial reports Q2 EPS 31c, consensus 22c
Reports Q3 revenue $$117.9M, consensus $114.12M. Justin Tang, the Founder, CEO and Chairman of the company, commented, "We are pleased to report a solid quarter where we made significant progress across a number of different aspects. [...] First, the industry regulatory environment remains challenging during the second quarter of this year. [...] Second, the high-quality loans on our platform and our strong reputation in the industry is helping us to attract more institutional investors. During the second quarter of 2019, funding from non-individual investors accounts for around 26.7% of the loans facilitated through our platform, a significant improvement from 10.4% in the first quarter of 2019. Demand from institutional investors for our high-quality assets remains strong and will gradually reduce our funding costs over time. Financial institutions have extended credit lines to us in an amount of approximately RMB26.4B for us to facilitate loan transactions on our platform which reflects the trust that financial institutions have in the quality of our assets and the strength of our risk management systems. Third, our delinquency rate improved on a sequential basis as we continue to invest in our risk management systems and the technology. With the macro economic environment softening, we are diversifying our customer acquisition channels through partnerships with e-commerce platforms and financial product marketplaces. Lastly, Xiaoying Wallet, our recently launched revolving credit product, grew rapidly during this quarter with transaction volumes jumping significantly to RMB971M from RMB200M in the last quarter and outstanding loan balance increasing to RMB578M as of June 30, 2019 from RMB177M as of March 31, 2019."