If finance is a barometer of the economy and an entry point to improve economic quality by improving the quality of supply, then financial technology companies are the driving force behind all these actions. In the first half of the year, financial technology companies were both contributors and beneficiaries behind the increase in social and economic activity.
On August 29, financial technology company Xiaoying Technology released its unaudited financial results for the second quarter ended June 30, 2023. Against the background of economic recovery and more refined company operations, the quality and quantity of its performance have improved significantly, and revenue and profit indicators have further increased.
As Tang Yue, founder, CEO and chairman of Xiaoying Technology, summed up, "mature business model, stable asset quality and optimized operating efficiency" are helping Xiaoying Technology keep up with the pulse of China's economy and provide More competitive financial technology services can release the warmth and goodwill of finance for consumers and businesses in need.
Performance resilience is rooted in social economy
Since the beginning of this year, financial demand has also continued to be active due to the amplification of social and economic needs. Financial technology companies represented by Xiaoying Technology are facing opportunities to further improve the quality and efficiency of their business.
The financial report shows that in the second quarter of 2023, Xiaoying Technology achieved a total net income of 1.2204 billion yuan, an operating profit of 444.7 million yuan, and a net profit of 366.3 million yuan. Non-GAAP adjusted net income The profit was 364.9 million yuan.
National economic operation data in the first half of the year show that core data such as comprehensive GDP, total retail sales of consumer goods, and national fixed asset investment are all on the rise. The economy is always interconnected, with upstream and downstream influencing each other. As a connector between the real economy and banking financial institutions, Xiaoying Technology currently cooperates with more than 80 financial institutions. Its resilience essentially comes from its understanding of economic trends. deep grasp.
Among them, rooting in the social economy and assisting the development of the real economy is the main theme. Data shows that as of the end of June 2023, Xiaoying Technology has served more than 4.8 million small and micro business owners and individual industrial and commercial households, demonstrating the industry awareness of financial inclusion and "drip irrigation" to accurately assist the development of the real economy. In the second quarter of 2023, the total amount of loans matched and provided by Xiaoying Technology was RMB 25.874 billion; as of June 30, 2023, the outstanding loan balance was RMB 45.071 billion.
In May this year, the China Banking and Insurance Regulatory Commission issued the "Notice on Increasing the Quality of Financial Services for Small and Micro Enterprises in 2023", which further clearly stated that a financial service system for small and micro enterprises should be formed that is compatible with the development of the real economy. The central bank also proposed at its regular meeting at the end of June that it should "further increase financial support for agriculture, rural areas, rural areas, small and micro enterprises, and private enterprises, play the role of precise drip irrigation, reduce social financing costs, promote the expansion of employment, and support the recovery of endogenous economic power."
It can be seen that Xiaoying Technology's deep connection with the real economy will help it understand the needs of front-line enterprises, truly achieve financial "drip irrigation" of the real economy, and improve the efficiency of financial assistance and the company's operating efficiency.
This process is also the process in which Xiaoying Technology’s technical capabilities come into play. Relying on the WinSAFE system independently developed by Xiaoying Technology, in the process of technology empowering finance, Xiaoying Technology can provide financial institutions with multi-functional and in-depth services ranging from risk control, marketing to asset management.
Judging from the data, this is mainly reflected in the effective control of investment intensity and reliable management of asset quality. Xiaoying Technology’s financial report shows that in the second quarter of 2023, the number of active borrowers on its platform was 1,474,930. Li Kan, President of Xiaoying Technology, mentioned that as of the end of June 2023, the overdue rate of the company’s outstanding loans that were 31-60 days overdue had been significantly improved.
He also said during the release of the first quarter financial report: "We do not expect significant fluctuations in our risk performance during the rest of the year. In addition, because we have sufficient credit lines, we will continue to negotiate financing costs with our institutional financing partners , expect to see positive impacts in the near future."
The significance is that with a stable margin of safety, the contract is expected to achieve marginally reduced financing costs. Under the current situation of amplified social demand, Xiaoying Technology is expected to continue to improve both in terms of quality and quantity.
9th Anniversary: Steady Steps towards Good Deeds
The release of Xiaoying Technology's financial report coincides with the critical juncture of the company's ninth anniversary. Xiaoying Technology was founded in 2014, and the financial technology industry ushered in an era of strong supervision in 2015 - it is a cyclical pain for companies that have not found a reasonable development direction, but for Xiaoying Technology, this is a long-term cycle The opening of trend dividends from a perspective.
This is also the fundamental reason why Xiaoying Technology’s performance continues to improve. Adhering to the original intention of adhering to sustainable development, technology empowering finance and supporting the real economy since its establishment, Xiaoying Technology has established a set of methodology that attaches equal importance to economic value and social value, and creates long-term value by improving the quality of operations, and in every Important time window for redemption.
The U.S. Stock Research Institute believes that its core values are to pay more attention to the connection between financial technology and society and users, and to integrate more warm and connotative services on top of basic business, "emphasis on both justice and benefit, and long-term success."
The protection of consumer rights and interests is a very representative part of it.
On the one hand, Xiaoying Technology uses "internalization" thinking to integrate consumer protection into its own business processes. It provides users with full-time intelligent services with higher satisfaction through business tools such as "artificial + AI" intelligent customer service system. In addition, Xiaoying Technology has also built a specialized financial black and gray industry defense system and a high-standard information security framework to build a secure bottom line for the development of financial technology.
On the other hand, in response to the current objective situation where consumers in the financial field have insufficient security awareness and fraud incidents occur from time to time, Xiaoying Technology takes the initiative. Based on its own observations of consumer financial security issues, it actively participates in consumer protection education and publicity to protect the industry. Order contributes. For example, the "New Citizen·New Life-Guarding the Money Bag" series of comics launched by Xiaoying Technology since 2022 specifically targets currently popular fraud methods for anti-fraud propaganda, and produces content based on the content consumption preferences of the younger generation. Improve the effectiveness of safety publicity.
At present, Xiaoying Technology has disseminated more than 100 consumer protection education courses to the outside world, covering more than 80 million users. Through multi-faceted construction, Xiaoying Technology has gradually built a professional and systematic consumer rights protection system.
In addition, Xiaoying Technology also closely follows the core trends of social and economic development and industry trends guided by policies, and explores development paradigms for the industry that keep pace with the times.
For example, at the level of serving the real economy, a large part of the current urban economic vitality comes from the newly added small and micro enterprises and new citizen groups, which take root in the local market for the first time and require effective support from the financial system.
The People's Bank of China, the Ministry of Finance and other five departments issued the "Guiding Opinions on Financial Support to Comprehensively Promote Rural Revitalization and Accelerate the Construction of an Agricultural Power" in June this year, paying special attention to the obvious problems that new citizen groups have in the transformation of urban development and economic momentum. Financial services are needed to achieve goals such as employment and entrepreneurship. Therefore, the industry needs to "make full use of information technology to accurately assess the credit status of new citizens, innovate highly suitable credit products, and improve the quality of financial supply and the equality of financial services."
Xiaoying Technology is already familiar with this. From 2021 to 2023, Xiaoying Technology will steadily launch strategic initiatives such as the "Micro Light Plan", "Yingxin Plan" and "City Light" Assistance Plan to provide precise and high-quality financial services for small and micro enterprises, new citizens and other groups, in the city Keep a firm foothold in the trend of industrial development and realize your dreams.
Data shows that from January 2022 to the end of May 2023, 60% of the borrowers served by Xiaoying Technology were new citizens, and 54% of the loans throughout the year went to new citizens. This is enough to prove that Xiaoying Technology pays attention to users, and also reflects the warmth and goodwill of finance.
It is worth mentioning that Xiaoying Technology has also independently opened up a public welfare path to achieve both economic value and social value.
China's "Financial Technology Development Plan (2022-2025)" document defines the development principles of financial technology as "digital drive, wisdom for the people, green and low carbon, fair and inclusive", and Xiaoying Technology fully resonates with the main theme . As early as 2018, Xiaoying Technology established the Xiaoying Charity Foundation around the four major public welfare directions of rural revitalization, green environmental protection, employee public welfare co-creation, and social assistance. This year, the foundation will assist in building the first rural school library in Xunwu. In the second quarter, Xiaoying Technology released the "2022 Corporate Social Responsibility Report", which provided a comprehensive and in-depth summary of the company's past financial road to good.
Conclusion
Commercial companies cannot talk about value without business. With Xiaoying Technology, we have seen how a variety of high-quality development initiatives affect the market’s evaluation of it. As of August 30, Xiaoying Technology’s US stock price has increased by more than 48% during the year. . This aspect is its continuous positive performance, which is enough to attract investors' attention. But on the other hand, the market also recognizes that financial technology can gain longer-term vitality by helping the real economy and realizing social values.
After all, this is a business in which the more active the economy itself, the higher the quality of the company's operations. If you want to get the "double click" of growth, you naturally need to grasp a broader perspective, "have a tiger in your heart and smell the roses carefully." I believe that this long-term competitiveness will bring more stable and lasting market value to Xiaoying Technology.
Source: US Stock Research Institute