Stock in News Spotlight: X Financial (NYSE: XYF)

On Tuesday, X Financial stock identified change of -3.08% away from 52-week low price and recently located move of -77.74% off 52-week high price. It has market worth of $341.09M and dividend yield of 4.55%. XYF stock has been recorded -20.65% away from 50 day moving average and -51.27% away from 200 day moving average. Moving closer, we can see that shares have been trading -21.97% off 20-day moving average.

X Financial (XYF) recently reported its unaudited financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Financial Results

Net revenues in the second quarter of 2019 reduced by 23.6% to RMB809.6M (US$117.9M) from RMB1, 059.6M in the same period of 2018, primarily Because of a decrease in transaction volumes of Xiaoying Credit Loan in this quarter contrast with the same period of 2018.

Loan facilitation service fees under the direct model in the second quarter of 2019 reduced by 46.0% to RMB474.1M (US$69.1M) from RMB878.6M in the same period of 2018, primarily Because of a decrease in transaction volumes of Xiaoying Credit Loan and a shift in strategy to attract more institutional investors through the intermediary model

Loan facilitation service fees under the intermediary model in the second quarter of 2019 increased by 64.7% to RMB157.5M (US$22.9M) from RMB95.6M in the same period of 2018, primarily Because of a raise in the total volume of products provided under the intermediary model as the Company shifted its strategy to attract more institutional investors.

Post-origination service fees in the second quarter of 2019 increased by 294.0% to RMB96.6M (US$14.1M) from RMB24.5M in the same period of 2018, primarily Because of a important increase in transaction volumes of Xiaoying Credit Loan over the last twelve months for loans with a weighted average contractual terms of 10~12 months. Revenues from post-origination services are recognized on a straight-line basis over the term of the underlying loans as the services are being provided.

Financing income in the second quarter of 2019 increased by 135.3% to RMB55.8M (US$8.1M) from RMB23.7M in the same period of 2018, primarily Because of the newly established trusts this year.

Other revenue in the second quarter of 2019 reduced by 31.1% to RMB25.6M (US$3.7M) from RMB37.1M in the same period of 2018, primarily Because of a decrease in guarantee revenue associated with loans facilitated under the Old ZhongAn model9, which are no longer provided to our consumers from September 15, 2017.

Origination and servicing expenses in the second quarter of 2019 increased by 47.6% to RMB421.7M (US$61.4M) from RMB285.6M in the same period of 2018, primarily Because of a raise in collection expenses for the cumulative effect of the growing business and consumer acquisition costs for the recently released revolving credit product, Xiaoying Wallet.

General and administrative expenses in the second quarter of 2019 increased by 28.9% to RMB55.6M (US$8.1M) from RMB43.1M in the same period of 2018, primarily Because of a raise in share-based compensation expenses for the options granted on or after IPO  and administrative expenses related to the newly established trusts.

Sales and marketing expenses in the second quarter of 2019 reduced by 53.4% to RMB26.8M (US$3.9M) from RMB57.5M in the same period of 2018, primarily Because of a reduction in promotional and advertising expenses. 

Provision for contingent guarantee liabilities in the second quarter of 2019 was nil, contrast with RMB83.6M in the same period of 2018, primarily because there have been no deteriorations in estimated default rates of the loans subject to guarantee liabilities facilitated in previous periods.

Provision for accounts receivable and contract assets in the second quarter of 2019 reduced by 63.0% to RMB40.1M (US$5.8M) from RMB108.5M in the same period of 2018, primarily Because of the decrease in revenue this quarter contrast with same period of 2018 and a change in estimated default rates.

Income from operation in the second quarter of 2019 reduced by 43.3% to RMB262.8M (US$38.3M) from RMB463.1M in the same period of 2018.

Income before income taxes and gain from equity in associates in the second quarter of 2019 was RMB186.6M (US$27.2M), contrast with RMB412.1M in the same period of 2018.

The Financial sector company, X Financial noticed change of -3.08% to $2.2 along volume of 21943 shares in recent session compared to an average volume of 41.05K. The stock observed return of -19.41% in 5 days trading activity. The stock was at -16.35% over one month performance. XYF’s shares are at -40.54% for the quarter and driving a -75.56% return over the course of the past year and is now at -48.48% since this point in 2018.   The average volatility for the week at 7.19% and for month was at 7.95%. There are 155.04M shares outstanding and 5.5M shares are floated in market.  

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