FAST NEWS: Yixin’s auto financing jumps on strong EV demand
The latest: Internet-based auto financier Yixin Group Ltd. (2858.HK) announced Wednesday its total financing for automobiles rose 30% to 17.7 billion yuan ($2.48 billion) in the third quarter of 2023.
Looking up: The company’s financing for new vehicles grew by 62.5% to 11.2 billion yuan, mainly due to strong performance for its electric vehicle (EV) business, which rose 219.4% to 4.2 billion yuan.
Take Note: Financing by the company’s used vehicle business remained relatively weak, falling 3% to 6.6 billion yuan during the period.
Digging Deeper: Yixin is a leading online auto finance platform, and counts internet giant Tencent (0700.HK) as its majority stakeholder. The company was originally a direct provider of auto loans, but became a loan facilitator between banks and consumers after a regulatory clampdown on online finance and P2P lending. In the first half of this year, its revenue rose 16% to 2.84 billion yuan, driven by a 65% jump in revenue from its other platform services to 520 million yuan. That compensated for weak 1% growth in its core loan facilitation services.
Market Reaction: Yuxin’s shares fell on Thursday to close down 1.6% at HK$0.61 by the midday break. The stock now trades at the lower end of its 52-week range.
Translation by A. Au
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