X Financial (XYF) stock prices were up 3.40% as of the market closing on August 9th, 2021. This brought the price per share up to USD$7.91 at the end of the trading day. Subsequent premarket fluctuations brought the stock price up by 9.99%, bringing it up to USD$8.70.
Strong Q2 2021 for XYF Stock
The second quarter of fiscal 2021 saw XYF stock report another consecutive quarter of operational and financial results. Q2 2021 saw the company report a record breaking total loan facilitation amount since its inception. Their bottom line’s strength continued to snowball on both a year-over-year and quarter-over-quarter basis. This is in line with the company’s previously announced guidance.
Facilitating Growth
The 2021 quarter saw the reduction of fees charged for XYF’s loan facilitation service. This service partners institutional funding partners with borrowers. The quarter also saw the lowering of the weighted average total borrowing cost for the company’s loan products. These measures are designed to attract and retain borrowers. With the continued facilitation of the company’s financial leanness, XYF anticipates maintaining the promising momentum of its profitable growth.
Regulatory Environment
April 2021 saw the National People’s Congress Standing Committee disclosed a second draft of the Personal Information Protection Law. Open to the public for comments, this demonstrated the Chinese government being resolved to strengthen user data security and privacy protection. The company continues to maintain the high value it has placed on user data protection. Concurrently, it continues to facilitate the improvement of its self-regulated internal mechanism. The company is closely monitoring regulatory developments so it can adapt accordingly to compliance changes and evolving market trends.
XYF Stock’s Improved Financial
The second quarter of 2021 saw total loan facilitation amounting to USD$1.98 billion. This represents a 108.6% year-over-year increase and an 18.2% quarter-over-quarter increase. This consistent increase was largely a result of the strong growth in the loan facilitation amount of Xiaoying Card Loan. The Xiaoying Card Loan was up 180.1% over the course of the year and up 18.2% as compared to the prior quarter. Xiaoying Card Loan has made up the entirely of XYF stock’s total loan facilitation amount since Q1 2021.
Future Outlook for XYF Stock
Armed with the massive success of its financial reports for the second quarter of fiscal 2021, XYF stock is poised to continue its trajectory of success. The company is keen to keep the momentum going through the upcoming quarters. Current and potential investors are hopeful that management will be able to facilitate significant and sustained increases in shareholder value.
