SHENZHEN, China - X Financial (NYSE: XYF), a prominent online personal finance company in China, has successfully concluded its tender offer, resulting in the repurchase of 2,026,640 American Depositary Shares (ADSs). The buyback, which closed on Monday, was originally set to repurchase up to 2 million ADSs but was increased to accommodate all validly tendered shares.
The repurchased ADSs, each representing six Class A ordinary shares at $4.52 per ADS, were acquired at a premium to the market price, reflecting the company's commitment to providing liquidity for shareholders seeking an exit. The tender offer also allowed remaining shareholders the chance to increase their relative ownership without additional cost.
X Financial's Chief Financial Officer, Mr. Frank Fuya Zheng, expressed satisfaction with the execution of the ADS buyback. He emphasized the company's focus on navigating economic challenges while ensuring sustainable success and delivering shareholder value. Zheng indicated that the company would continue to explore various methods, such as dividends and share buybacks, depending on profitability and operational smoothness.
Following the tender offer's completion, X Financial anticipates having 186,872,295 Class A ordinary shares outstanding. Broadridge Corporate Issuer Solutions, LLC, the information agent and depositary for the tender offer, will promptly process payments for the accepted ADSs in line with the offer's terms.
X Financial, known for its big data-driven technology, has established strategic partnerships with financial institutions, facilitating loan origination to prime borrowers through a robust risk assessment and control system.
This article is based on a press release statement from X Financial. The information provided reflects the company's reported results and intentions regarding the tender offer and does not constitute an endorsement or promotion of X Financial or its strategies.
In other recent news, X Financial, a leading online personal finance company in China, has launched a tender offer to repurchase up to 2 million of its American Depositary Shares (ADSs) at $4.52 each. This move is part of a previously approved $20 million share buyback program.
The tender offer is not subject to a minimum share tender condition or financing prerequisites and will conclude at 5:00 P.M. New York City time on July 12, 2024. The company's Board of Directors has authorized this offer, with Broadridge Corporate Issuer Solutions, LLC acting as the information and depositary agent.
In the first quarter of 2024, X Financial reported robust financial performance despite a decrease in loan volumes. The total loan amount facilitated and originated dropped by 11% year-over-year and 18% quarter-over-quarter to RMB 22 billion. However, total net revenue and net income rose to RMB 1.2 billion and RMB 363 million, respectively. CFO, Frank Fuya Zheng, also announced the share repurchase program of up to $20 million.
These recent developments indicate X Financial's commitment to sustainable profitability and shareholder value creation. Despite a rise in delinquency rates, the company has managed to increase profits and expects the total loan amount facilitated and originated for the full year 2024 to be around RMB 100 billion. For the second quarter of 2024, the anticipated loan amount is between RMB 23 billion and RMB 24.5 billion.
InvestingPro Insights
X Financial (NYSE: XYF) has demonstrated a commitment to enhancing shareholder value through its recent tender offer, and the company's financial metrics provide further insight into its performance and appeal to investors.
According to InvestingPro data, X Financial boasts an impressive Price/Earnings (P/E) ratio of 1.2, which is significantly lower than the industry average, indicating that the company's shares may be undervalued. This aligns with the InvestingPro Tip highlighting that XYF is trading at a low earnings multiple.
The company's Price to Book (P/B) ratio, as of the last twelve months leading up to Q1 2024, stands at 0.25, further suggesting that the stock could be undervalued relative to its assets. Additionally, X Financial's dividend yield is substantial at 7.5%, a noteworthy consideration for income-focused investors and aligning with the InvestingPro Tip that the company pays a significant dividend to shareholders.
InvestingPro also lists an encouraging revenue growth of 36.37% for the same period, which may interest investors looking for companies with strong sales performance. Moreover, those interested in discovering more about X Financial's investment potential can access additional tips on InvestingPro, where 6 more InvestingPro Tips are available. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
The data and tips provided by InvestingPro offer a comprehensive view of X Financial's financial health and potential for growth, complementing the company's strategic initiatives such as the recent ADS buyback.
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