X Financial (NYSE:XYF) Q3 2022 Earnings Call Transcript

Unidentified Analyst: All right. And then I guess, finally, how come there are no fintech companies that trade in Shenzhen or Shanghai? There’s four or five that trade here in the United States. There was more but some of them weren’t managed very well. I’m thinking — well, you know the ones I’m referring to, LexinFintech or 360 Digital. But why — how come none are trading over there in the PRC?

Kan Li: Well, I guess that already answered your previous question, right? Actually — go ahead.

Unidentified Analyst: I’m sorry.

Kan Li: No, that’s it. I think that your observation is very acute. And I think that basically answered your previous question.

Unidentified Analyst: All right. I mean the only one that note — not the notice Ant Financials had trouble coming, and it’s a massive company. But there is expectations, I guess, that they will be listed at some point. But anyway, that’s a different discussion. Very well, thank you for your answers, and again, I hope you continue to do what you’re doing, which is returning money to shareholders. We’re finally getting some sort of positive response as your stock is lifting along with many stocks listed in the form of ADS here. I look forward to following your progress.

Frank Fuya Zheng: Thank you for your questions.

Operator: And we have a follow-up from with Equinox Capital. Please go ahead.

Unidentified Analyst: Just to follow on that discussion and conversation about how to increase interest in the stock here in the U.S. I don’t know that you’re followed by any analysts out there. So it’s often very difficult for investors outside of China to even hear or learn about the Company. And the other thing that you could do, the management team could purchase shares here in ADS form and make some note of that publicly so that it’s a reiteration of your confidence in the outlook of the Company and in the Company shares, which I think the delisting concern is and the risk is real because, as you’ve said, you were not large enough to relist in Hong Kong. So the concern that I have, as always, is that if you do lose your listing here in the U.S., I don’t have any recourse as an investor in your company. So, if you could somehow speak to those concerns that would be great.

Kan Li: No, we could consider that. Thank you.

Frank Fuya Zheng: Yes, the only one I just write up IPO and because of the stock performance, I think most people think it’s not worthwhile to cover us. I think maybe in the second half of next year after regulatory investing situation are more or less clear, and I’ll finish, we will initiate those efforts to recruit someone to cover us. Thanks for your suggestion.

Operator: And we have a follow-up from .

Unidentified Analyst: The threat of delisting, I had historically not dismissed but thought it was overrated for many companies because there have some that have just been delisted for other reasons historically here. Maybe they didn’t their auditing done in time, their 20-Fs or something. And they went to the bulletin board or pink sheets, but they still traded, and many of them that I’ve owned that have, went private, not always at the premium I would have liked. But if your company is too small to be listed in Hong Kong, what would be the recourse? Would you take — taking it private would be the only thing because you would need to — your majority shareholders, the people — the founders of the Company would need some vehicle to manage.