Latest news with #RMB1.94
Yahoo
21-05-2025
- Business
- Yahoo
X Financial (XYF) Q1 2025 Earnings Call Highlights: Robust Loan Growth and Strategic Share Buybacks
Loan Originations: RMB35.15 billion, an 8.8% sequential increase and 63.4% year-over-year growth. Total Revenue: RMB1.94 billion, up 13.4% sequentially and over 60% year over year. 31 to 60-Day Delinquency Rate: 1.25%, a 22% improvement year over year. 91 to 180-Day Delinquency Rate: 2.7%, a 37% reduction year over year. Total Loan Outstanding Balance: RMB58.4 billion, a 33% increase from Q1 2024. Income from Operations: RMB573 million, up 52% year over year. Non-GAAP Adjusted Net Income: RMB457 million, a 44.9% year-over-year increase. Basic Earnings per ADS: USD1.50, a 45.6% year-over-year increase. Return on Equity: 25.5%, up 1.4 percentage points year over year and 3.2 points sequentially. Share Repurchase Plan: Authorization to buy back up to USD100 million worth of Class A shares and ADS. Q2 2025 Loan Facilitation Outlook: Expected to be in the range of RMB37.5 billion to RMB39.5 billion. Warning! GuruFocus has detected 1 Warning Sign with BILI. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. X Financial (NYSE:XYF) facilitated RMB35.15 billion in loans in Q1 2025, marking an 8.8% sequential increase and a 63.4% year-over-year growth. Total revenue reached RMB1.94 billion, up 13.4% from Q4 and over 60% year over year, driven by higher borrower volumes and originations. The company achieved a significant improvement in credit quality, with the 31 to 60-day delinquency rate decreasing to 1.25% from 1.61% a year ago. Non-GAAP adjusted net income for Q1 increased by 44.9% year over year, reflecting sustained earnings strength. X Financial (NYSE:XYF) announced a new share repurchase plan allowing buybacks up to USD100 million, indicating confidence in its financial position. Despite improvements, the delinquency rate has ticked up slightly compared to the end of last year, indicating potential future risk. The regulatory environment in China remains dynamic, which may introduce higher compliance requirements and potential operational challenges. There is uncertainty regarding the impact of new regulations expected in October, which could affect the company's growth trajectory. The company did not repurchase any shares in Q1 due to the lack of an open window, which may concern some investors looking for immediate returns. Future growth projections are cautious due to potential regulatory impacts, particularly in Q4, which could affect overall performance. Q: There's strong growth in your business, both in new loan origination and active users. How do you view the current macroeconomic environment and its impact on loan growth and delinquency rates? A: Kan Li, President, explained that the company is focused on managing its portfolio based on future environmental assessments. The current environment is favorable for portfolio growth, supported by investments in acquiring new customers. Although there has been a slight uptick in delinquency rates, they remain healthy, and any increases are expected to be offset by overall scale, ensuring profitability is not impacted. Q: You haven't repurchased any shares in the first quarter, but you have approved another share repurchase program. Can you provide more details on this? A: Fuya Zheng, CFO, stated that the company plans to utilize the remaining $60 million from the previous buyback authorization during the upcoming open window. Additionally, the newly authorized $100 million repurchase plan will cover buybacks during non-window periods, reflecting a commitment to aggressive stock buybacks. Q: Regarding your loan growth guidance for the next quarter, what is driving this growth, and how do you see credit demand in recent months? A: Kan Li noted that growth is driven by acquiring new customers and offering them better products over time. Despite macroeconomic noise, the company remains confident in its growth strategy. The funding partners are in close conversation about upcoming regulatory changes, and the company is prepared to comply fully by the October deadline. Q: How are you preparing for potential regulatory impacts on loan pricing and compliance? A: Fuya Zheng mentioned that the company is in discussions with institutional partners and regulatory authorities to prepare for potential regulatory impacts. They are ready to make necessary adjustments to ensure compliance and are confident in their ability to handle any industry shocks. Q: Can you elaborate on the funding supply and any feedback from partners regarding loan pricing above 24%? A: Kan Li stated that the company is in close communication with funding partners about regulatory changes. While adjustments are expected, the company is confident in maintaining compliance and does not foresee significant disruptions to growth prospects. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
ZKH Group Ltd (ZKH) Q1 2025 Earnings Call Highlights: Strong Customer Growth and Improved Cash ...
Revenue: RMB1.94 billion, a 4% increase year-over-year. Operating Loss: Approximately RMB80 million, a 37.7% improvement year-over-year. Net Loss: Around RMB66 million, a 26.6% improvement year-over-year. Net Cash Outflow from Operating Activities: RMB97 million, compared to RMB220 million in the same period last year. Total GMV: RMB2.17 billion, with underlying GMV maintaining robust double-digit year-over-year growth. Gross Profit Margin: Slightly decreased to 17.2% from 18% in the prior year period. Operating Expenses: Decreased by 10.9% year-over-year to RMB412.9 million. Marketplace Take Rate: Increased by 235.9 basis points year-over-year to 14%. Private Label Products GMV: Exceeded RMB190 million, a 40% increase year-over-year. GBB Platform Customer Growth: Over 24,000 customers, up 73% year-over-year. GBB Platform Sales Growth on Tmall: Over 260% quarter-over-quarter. Warning! GuruFocus has detected 2 Warning Sign with ZKH. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ZKH Group Ltd (NYSE:ZKH) experienced a 30.3% year-over-year increase in the total number of customers, surpassing 60,000. Sales to industry key accounts and regional SME customers achieved double-digit growth. The company achieved single-month profitability in March despite seasonal impacts and investments in US operations. Net cash outflow from operating activities improved significantly, reducing from RMB220 million to RMB97 million year-over-year. The GBB platform, in partnership with Tmall, achieved over 260% quarter-over-quarter sales growth, with customer growth accelerating by 73% year-over-year. Sales to state-owned enterprises (SOEs) and central SOE customers declined significantly year-over-year due to a high comparison base and business optimization initiatives. The company's operating loss was approximately RMB80 million, and the net loss was around RMB66 million, despite improvements. Gross profit margin slightly decreased to 17.2% from 18% in the prior year period. Marketplace revenue declined due to the prior year's high comparison base. Operating expenses, although reduced, still included approximately RMB10 million in US-related expenses, impacting overall cost efficiency. Q: Could management share the impacts from tariffs on your domestic and US business, and the measures taken by the company? Is there a timeline for entering new markets beyond the US, such as Europe? A: Eric Long Chen, Chairman and CEO, explained that US tariffs are not a negative factor but rather a tailwind for expanding the US business. The US primarily imports MROs from China and Southeast Asia, and ZKH has prepared by building a reserve of suppliers from these regions. The company plans to start its business in Europe in the second half of the year, focusing online across Europe and offline in Germany and Hungary. Southeast Asia operations have begun, with a focus on serving Chinese companies there. Q: Could you please share updates on this year's product strategy, including key product categories and private label brands? A: Eric Long Chen stated that ZKH has 32 product lines across five categories: spare parts, chemicals, processing, manufacturing, general consumables, and administrative materials. The focus for 2025 will be on industrial-grade MRO products and strengthening private labels, particularly in chemicals and processing. Private labels will involve proactive R&D and design to enhance competitiveness and support overseas business. Q: Can management share updates regarding the company's business and financial outlook for the upcoming quarters? A: Eric Long Chen mentioned that ZKH achieved its Q1 targets and expects business with SOEs and central SOEs to accelerate in the next quarters. For Q2 to Q4, especially Q3 and Q4, the company aims for double-digit GMV growth. Profitability is expected to break even in Q2, with positive profitability in Q3 and Q4. For 2025, GMV will be positive year-over-year, with domestic business profitability and overall breakeven for the group. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
