FAST NEWS: XXF Group profit jumps on post-pandemic rebound
The latest: Auto finance and leasing company XXF Group Holdings Ltd. (2473.HK) said on Thursday it expects to report a net profit of 103 million yuan ($14.3 million) or more for last year, up 30.5% or more from 2022.
Looking up: The profit increase was mainly the result of stronger revenue on a post-pandemic rebound, increased marketing efforts and the opening of new self-operated sales outlets.
Take Note: Last year the company also incurred expenses related to its listing, as well as finance and share-based compensation expenses.
Digging Deeper: XXF Group was founded in 2007 by entrepreneur Huang Wei, and started out in auto rentals. Sensing a business opportunity, it shifted into selling vehicles through financed leasing, and hit the big time. The company went public on Beijing’s National Equities Exchange and Quotations (NEEQ) board in 2015, but left the market a year later due to paltry trading volumes. It submitted six applications between 2019 and 2022 to list in Hong Kong, and finally succeed on its seventh try with its IPO last November.
Market Reaction: XXF Group’s shares fell on Friday and closed down 6.3% at HK$3.14 by the midday break. The stock now trades 185% higher than its IPO price of HK$1.10.
Translation by A. Au
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