UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the Month of August 2023

 

Commission File Number: 001-38652

 

X Financial

(Exact name of registrant as specified in its charter)

 

7-8F, Block A, Aerospace Science and Technology Plaza

No. 168, Haide Third Avenue, Nanshan District

Shenzhen, 518067, the People’s Republic of China

+86-755-86282977

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation ST Rule 101(b)(1): Not Applicable

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation ST Rule 101(b)(7): Not Applicable

 

 

 

 

 

 

EXHIBIT INDEX

 

Exhibit   Description
99.1   Press Release titled “X Financial Reports Second Quarter 2023 Unaudited Financial Results”

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  X Financial
   
  By: /s/ Yue (Justin) Tang
  Name: Yue (Justin) Tang
  Title: Chairman and Chief Executive Officer

 

Date: August 28, 2023

 

 

 

 

Exhibit 99.1

 

X Financial Reports Second Quarter 2023 Unaudited Financial Results

 

SHENZHEN, China, August 28, 2023 /PRNewswire/ -- X Financial (NYSE: XYF) (the “Company” or “we”), a leading online personal finance company in China, today announced its unaudited financial results for the second quarter ended June 30, 2023.

 

Second Quarter 2023 Operational Highlights

 

   Three Months Ended   Three Months Ended   Three Months Ended         
   June 30, 2022   March 31, 2023   June 30, 2023   QoQ   YoY 
Total loan amount facilitated and originated (RMB in million)   16,879    24,088    25,874    7.4%   53.3%
Number of active borrowers   1,140,249    1,523,738    1,474,930    (3.2)%   29.4%

 

·The total loan amount facilitated and originated1 in the second quarter of 2023 was RMB25,874 million, representing an increase of 53.3% from RMB16,879 million in the same period of 2022.

·Total number of active borrowers2 was 1,474,930 in the second quarter of 2023, representing an increase of 29.4% from 1,140,249 in the same period of 2022.

 

   As of June 30, 2022   As of March 31, 2023   As of June 30, 2023 
Total outstanding loan balance (RMB in million)   29,075    41,531    45,071 
Delinquency rates for all outstanding loans that are past due for 31-60 days   0.93%   1.05%   0.96%
Delinquency rates for all outstanding loans that are past due for 91-180 days   3.07%   2.40%   2.50%

 

·The total outstanding loan balance3 as of June 30, 2023 was RMB45,071 million, compared with RMB29,075 million as of June 30, 2022.

·The delinquency rate for all outstanding loans that are past due for 31-60 days4 as of June 30, 2023 was 0.96%, compared with 0.93% as of June 30, 2022.

·The delinquency rate for all outstanding loans that are past due for 91-180 days5 as of June 30, 2023 was 2.50%, compared with 3.07% as of June 30, 2022.

 

 

1 Represents the total amount of loans that the Company facilitated and originated during the relevant period.

2 Represents borrowers who made at least one transaction on the Company’s platform during the relevant period.

3 Represents the total amount of loans outstanding for loans that the Company facilitated and originated at the end of the relevant period. Loans that are delinquent for more than 60 days are charged-off and are excluded in the outstanding loan balance, except for Xiaoying Housing Loan. As Xiaoying Housing Loan is a secured loan product and the Company is entitled to payment by exercising its rights to the collateral, the Company does not exclude Xiaoying Housing loan delinquent for more than 60 days in the outstanding loan balance.

4 Represents the balance of the outstanding principal and accrued outstanding interest for loans that were 31 to 60 days past due as a percentage of the total balance of outstanding principal and accrued outstanding interest for loans that the Company facilitated and originated as of a specific date. Loans that are delinquent for more than 60 days are charged-off and excluded in the calculation of delinquency rate by balance. Xiaoying Housing Loan was launched in 2015 and ceased in 2019, and all the outstanding loan balance of housing loan as of June 30, 2022, March 31, 2023 and June 30, 2023 were overdue more than 60 days. To make the delinquency rate by balance comparable, the Company excludes Xiaoying Housing Loan in the calculation of delinquency rate.

5 To make the delinquency rate by balance comparable to the peers, the Company also defines the delinquency rate as the balance of the outstanding principal and accrued outstanding interest for loans that were 91 to 180 days past due as a percentage of the total balance of outstanding principal and accrued outstanding interest for the loans that the Company facilitated and originated as of a specific date. Loans that are delinquent for more than 180 days are excluded in the calculation of delinquency rate by balance, except for Xiaoying Housing Loan. All the outstanding loan balance of housing loan as of June 30, 2022, March 31, 2023 and June 30, 2023 were overdue more than 180 days. To make the delinquency rate by balance comparable, the Company excludes Xiaoying Housing Loan in the calculation of delinquency rate.

 

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Second Quarter 2023 Financial Highlights

 

(In thousands, except for share and per share data)  Three Months Ended
June 30, 2022
   Three Months Ended
March 31, 2023
   Three Months Ended
June 30, 2023
   QoQ   YoY 
   RMB   RMB   RMB         
Total net revenue   824,338    1,004,934    1,220,422    21.4%   48.0%
Total operating costs and expenses   (630,515)   (700,897)   (775,713)   10.7%   23.0%
Income from operations   193,823    304,037    444,709    46.3%   129.4%
Net income   185,700    284,346    366,292    28.8%   97.2%
Non-GAAP adjusted net income   210,688    306,525    364,885    19.0%   73.2%
                          
Net income per ADS—basic   3.36    5.94    7.62    28.3%   126.8%
Net income per ADS—diluted   3.30    5.82    7.50    28.9%   127.3%
                          
Non-GAAP adjusted net income per ADS—basic   3.78    6.36    7.62    19.8%   101.6%
Non-GAAP adjusted net income per ADS—diluted   3.72    6.24    7.44    19.2%   100.0%

 

·Total net revenue in the second quarter of 2023 was RMB1,220.4 million (US$168.3 million), representing an increase of 48.0% from RMB824.3 million in the same period of 2022.

·Income from operations in the second quarter of 2023 was RMB444.7 million (US$61.3 million), compared with RMB193.8 million in the same period of 2022.

·Net income in the second quarter of 2023 was RMB366.3 million (US$50.5 million), compared with RMB185.7 million in the same period of 2022.

·Non-GAAP6 adjusted net income in the second quarter of 2023 was RMB364.9 million (US$50.3 million), compared with RMB210.7 million in the same period of 2022.

·Net income per basic and diluted American depositary share (“ADS”) 7 in the second quarter of 2023 was RMB7.62 (US$1.05) and RMB7.50 (US$1.03), compared with RMB3.36 and RMB3.30, respectively, in the same period of 2022.

·Non-GAAP adjusted net income per basic and adjusted diluted ADS in the second quarter of 2023 was RMB7.62 (US$1.05) and RMB7.44 (US$1.03), compared with RMB3.78 and RMB3.72, respectively, in the same period of 2022.

 

Mr. Justin Tang, the Founder, Chief Executive Officer and Chairman of the Company, commented, “We are delighted to end the first half of 2023 with outstanding operational and financial performance in the second quarter. We continued to execute our proven strategy and maintain our growth momentum. In the first half of the year, the total loan facilitation and origination amount reached nearly RMB50 billion, an impressive increase of over 55% year-over-year. Our top line improved by 30%, while our bottom line nearly doubled in the first half, underpinned by our proven business model, consistent asset quality and optimized operational efficiency. Furthermore, our net income per basic ADS for the first half of the year grew more than 130% year-over-year, driven by our robust profitability and dedication to rewarding shareholders through our share repurchase program.”

 

 

6 The Company uses in this press release the following non-GAAP financial measures: (i) adjusted net income (loss), (ii) adjusted net income (loss) per basic ADS, and (iii) adjusted net income (loss) per diluted ADS, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments and impairment losses on long-term investments. For more information on non-GAAP financial measure, please see the section of “Use of Non-GAAP Financial Measures Statement” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

7 Each American depositary share (“ADS”) represents six Class A ordinary shares.

 

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“On the regulatory side, with the recent settlement of fines imposed on some large financial platforms by the government, the market believes that the industry-wide rectification is expected to come to an end, and a more stable regulatory environment is expected. Financial regulatory authorities are now shifting their focus towards regular supervision. As a highly responsible company, we always operate in full compliance with regulations and laws and will continue to prioritize financial consumer protection.”

 

“Looking ahead to the second half of 2023, we are confident in our ability to achieve sustainable growth and enhance shareholder value. The normal regulatory environment provides a solid foundation for our continued growth and success. We remain committed to executing our share repurchase and dividend program to reward our valued shareholders.”

 

Mr. Kent Li, President of the Company, added, “During the second quarter, our total loan amount facilitated and originated increased by 53% year-over-year and 7% quarter-over-quarter to RMB26 billion, in line with our expectations, with the total outstanding loan balance reaching RMB45 billion at the end of June 2023. We continued to strengthen our risk management system to maintain healthy asset quality, with the delinquency rate for all outstanding loans past due for 31-60 days remaining stable at 0.96% at the end of June 2023, and the delinquency rate for all outstanding loans past due for 91-180 days at 2.50%, significantly improved from a year ago. We are proud of our consistently high quality risk control and stable prime borrowers base, which have been well received and recognized by our institutional funding partners. We will continue to work together to meet the financing needs of consumers and SMEs in support of China's economic recovery.”

 

Mr. Frank Fuya Zheng, Chief Financial Officer of the Company, added, “We are very pleased with our strong financial results for the second quarter. Total net revenue increased by 48% year-over-year and 21% quarter-over-quarter to RMB1,220 million. Our relentless focus on tightening cost control and improving operational efficiency enabled us to deliver revenue growth that outpaced cost and expense growth. As a result, net income for the second quarter surged by 97% year-over-year and 29% quarter-over-quarter, reaffirming our commitment to delivering substantial profits. The positive impact of our ongoing share repurchase program further contributed to our achievements, resulting in a noteworthy improvement in net income per basic ADS, rising by 127% from RMB3.36 in the same period last year to RMB7.62. To maximize shareholder value, our board of directors has also approved a special dividend of $0.17 per ADS, which is expected to be paid in October this year.”

 

“Given the stabilized regulatory environment, we expect to achieve steady growth in both operational and financial performance in the second half of the year, further solidifying our position in the market.”

 

Second Quarter 2023 Financial Results

 

Total net revenue in the second quarter of 2023 increased by 48.0% to RMB1,220.4 million (US$168.3 million) from RMB824.3 million in the same period of 2022, primarily due to an increase in the total loan amount facilitated and originated this quarter compared with the same period of 2022.

 

   Three Months Ended June 30,     
(In thousands, except for share and per share data)  2022   2023   YoY 
   RMB   % of Revenue   RMB   % of Revenue     
Loan facilitation service   471,531    57.2%   715,503    58.6%   51.7%
Post-origination service   82,304    10.0%   140,317    11.5%   70.5%
Financing income   234,756    28.5%   274,639    22.5%   17.0%
Other revenue   35,747    4.3%   89,963    7.4%   151.7%
Total net revenue   824,338    100.0%   1,220,422    100.0%   48.0%

 

Loan facilitation service fees in the second quarter of 2023 increased by 51.7% to RMB715.5 million (US$98.7 million) from RMB471.5 million in the same period of 2022, primarily due to an increase in the total loan amount facilitated this quarter compared with the same period of 2022.

 

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Post-origination service fees in the second quarter of 2023 increased by 70.5% to RMB140.3 million (US$19.4 million) from RMB82.3 million in the same period of 2022, primarily due to the cumulative effect of increased volume of loans facilitated in the previous quarters. Revenues from post-origination services are recognized on a straight-line basis over the term of the underlying loans as the services are being provided.

 

Financing income in the second quarter of 2023 increased by 17.0% to RMB274.6 million (US$37.9 million) from RMB234.8 million in the same period of 2022, primarily due to an increase in average loan balances compared with the same period of 2022.

 

Other revenue in the second quarter of 2023 increased by 151.7% to RMB90.0 million (US$12.4 million), compared with RMB35.7 million in the same period of 2022, primarily due to an increase in referral service fee for introducing borrowers to other platforms.

 

Origination and servicing expenses in the second quarter of 2023 increased by 25.6% to RMB669.7 million (US$92.4 million) from RMB533.1 million in the same period of 2022, primarily due to the following factors: (i) an increase in commission fees resulting from the increased in total loan amount facilitated and originated this quarter compared with the same period of 2022 and (ii) an increase in interest expenses as a result of an increase in payable to institutional funding partners and investors.

 

Provision for loans receivable in the second quarter of 2023 was RMB55.4 million (US$7.6 million), compared with RMB32.2 million in the same period of 2022, primarily due to an increase in loans receivable held by the Company as a result of the increase in total loan amount facilitated and originated this quarter compared with the same period of 2022.

 

Income from operations in the second quarter of 2023 was RMB444.7 million (US$61.3 million), compared with RMB193.8 million in the same period of 2022.

 

Income before income taxes and gain from equity in affiliates in the second quarter of 2023 was RMB443.9 million (US$61.2 million), compared with RMB220.2 million in the same period of 2022.

 

Income tax expense in the second quarter of 2023 was RMB87.0 million (US$12.0 million), compared with RMB42.2 million in the same period of 2022.

 

Net income in the second quarter of 2023 was RMB366.3 million (US$50.5 million), compared with RMB185.7 million in the same period of 2022.

 

Non-GAAP adjusted net income in the second quarter of 2023 was RMB364.9 million (US$50.3 million), compared with RMB210.7 million in the same period of 2022.

 

Net income per basic and diluted ADS in the second quarter of 2023 was RMB7.62 (US$1.05), and RMB7.50 (US$1.03), compared with RMB3.36 and RMB3.30, respectively, in the same period of 2022.

 

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Non-GAAP adjusted net income per basic and diluted ADS in the second quarter of 2023 was RMB7.62 (US$1.05), and RMB7.44 (US$1.03), compared with RMB3.78 and RMB3.72 respectively, in the same period of 2022.

 

Cash and cash equivalents was RMB1,320.4 million (US$182.1 million) as of June 30, 2023, compared with RMB921.2 million as of March 31, 2023.

 

Recent Development

 

Share Repurchase Plan

 

In the second quarter of 2023, the Company repurchased an aggregate of 405,845 ADSs for a total consideration of US$1.58 million. In 2022, the Company had repurchased an aggregate of 266,882 ADSs and 46,487,276 Class A ordinary shares for a total consideration of US$21.1 million.

 

On November 16, 2022, the Company announced that the board of directors (the “Board”) authorized to increase its share repurchase program to US$30 million from US$20 million, effective through September 2023. Under this plan, the Company has approximately US$7.3 million remaining for potential repurchases. On August 28, 2023, the Board approved the extension of the Company's existing share repurchase program for an additional twelve months, until the end of September 2024.

 

Declaration of Special Dividend

 

The Company today announced the Company’s board of directors has approved the declaration and payment of a special dividend of US$0.17 per ADS (approximately US$0.028 per ordinary share). The Special Dividend will be paid on or about October 18, 2023 to the holders of the Company’s ordinary shares of record as of the close of business on September 19, 2023, being the record date for determination of entitlements to the Special Dividend.

 

Business Outlook

 

The Company expects the total loan amount facilitated and originated for the third quarter of 2023 to be between RMB28.5 billion and RMB29.5 billion. The total loan amount facilitated and originated for 2023 is expected to be between RMB105 billion and RMB110 billion.

 

This forecast reflects the Company’s current and preliminary views, which are subject to changes.

 

Conference Call

 

X Financial’s management team will host an earnings conference call at 7:00 AM U.S. Eastern Time on August 29, 2023 (7:00 PM Beijing / Hong Kong Time on the same day).

 

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Dial-in details for the earnings conference call are as follows:

 

United States: 1-888-346-8982
Hong Kong: 852-301-84992
Mainland China: 4001-201203
International: 1-412-902-4272
Passcode: X Financial

 

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

 

A replay of the conference call may be accessed by phone at the following numbers until September 5, 2023:

 

United States: 1-877-344-7529
International: 1-412-317-0088
Passcode: 5551060

 

Additionally, a live and archived webcast of the conference call will be available at http://ir.xiaoyinggroup.com.

 

About X Financial

 

X Financial (NYSE: XYF) (the "Company") is a leading online personal finance company in China. The Company is committed to connecting borrowers on its platform with its institutional funding partners. With its proprietary big data-driven technology, the Company has established strategic partnerships with financial institutions across multiple areas of its business operations, enabling it to facilitate and originate loans to prime borrowers under a risk assessment and control system.

 

For more information, please visit: http://ir.xiaoyinggroup.com.

 

Use of Non-GAAP Financial Measures Statement

 

In evaluating our business, we consider and use non-GAAP measures as supplemental measures to review and assess our operating performance. We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of the non-GAAP financial measures facilitates investors’ assessment of our operating performance and help investors to identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income (loss) from operations and net income (loss). We also believe that the non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

 

We use in this press release the following non-GAAP financial measures: (i) adjusted net income, (ii) adjusted net income per basic ADS, and (iii) adjusted net income per diluted ADS, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments and impairment losses on long-term investments. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, investors should not consider them in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

 

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We mitigate these limitations by reconciling the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

 

For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.

 

Exchange Rate Information

 

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 7.2513 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2023.

 

Disclaimer

 

Safe Harbor Statement

 

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the followings: the Company’s goals and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace’s products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is current as of the date of this announcement, and the Company does not undertake any obligation to update such information, except as required under applicable law.

 

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Use of Projections

 

This announcement also contains certain financial forecasts (or guidance) with respect to the Company’s projected financial results. The Company’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections or guidance for the purpose of their inclusion in this announcement, and accordingly, they did not express an opinion or provide any other form assurance with respect thereto for the purpose of this announcement. This guidance should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could actual results to differ materially from those contained in the prospective financial information. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company, or that actual results will not diff materially from those set forth in the prospective financial information. Inclusion of the prospective financial information in this announcement should not be regarded as a representation by any person that the results contained in the prospective financial information will actually be achieved. You should review this information together with the Company’s historical information.

 

For more information, please contact:

 

X Financial

Mr. Frank Fuya Zheng

E-mail: ir@xiaoying.com

 

Christensen IR

 

In China

Mr. Eric Yuan

Phone: +86-10-5900-1548

E-mail: eric.yuan@christensencomms.com

 

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.com

 

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X Financial

Unaudited Condensed Consolidated Balance Sheets  

 

(In thousands, except for share and per share data)  As of December 31, 2022   As of June 30, 2023   As of June 30, 2023 
   RMB   RMB   USD 
ASSETS               
Cash and cash equivalents   602,271    1,320,414    182,093 
Restricted cash   404,689    594,739    82,018 
Accounts receivable and contract assets, net   1,161,912    1,493,595    205,976 
Loans receivable from Xiaoying Credit Loans and other loans, net   3,810,393    4,302,970    593,407 
Loans at fair value   120,280    4,415    609 
Deposits to institutional cooperators, net   1,770,317    1,759,421    242,635 
Prepaid expenses and other current assets, net   71,082    26,992    3,722 
Deferred tax assets, net   88,428    79,943    11,025 
Long-term investments   495,995    517,017    71,300 
Property and equipment, net   5,861    7,465    1,029 
Intangible assets, net   36,550    35,931    4,955 
Loan receivable from Xiaoying Housing Loans, net   10,061    9,865    1,360 
Financial investments   192,620    201,932    27,848 
Other non-current assets   67,204    62,308    8,593 
TOTAL ASSETS   8,837,663    10,417,007    1,436,570 
                
LIABILITIES               
Payable to investors and institutional funding partners at amortized cost   2,627,910    3,034,343    418,455 
Payable to investors at fair value   141,289    3,537    488 
Financial guarantee derivative   107,890    -    - 
Short-term borrowings   70,209    662,709    91,392 
Accrued payroll and welfare   63,681    50,987    7,031 
Other tax payable   255,691    276,978    38,195 
Income tax payable   270,089    371,935    51,292 
Deposit payable to channel cooperators   19,700    19,700    2,717 
Accrued expenses and other current liabilities   476,035    507,175    69,943 
Dividend payable   -    58,693    8,094 
Other non-current liabilities   51,193    45,059    6,214 
Deferred tax liabilities   722    8,727    1,204 
TOTAL LIABILITIES   4,084,409    5,039,843    695,025 
                
Commitments and Contingencies               
Equity:               
Common shares   207    207    29 
Treasury stock   (124,597)   (132,201)   (18,231)
Additional paid-in capital   3,191,194    3,210,797    442,789 
Retained earnings   1,622,851    2,214,795    305,434 
Other comprehensive income   63,599    83,566    11,524 
Total X Financial shareholders' equity   4,753,254    5,377,164    741,545 
Non-controlling interests   -    -    - 
TOTAL EQUITY   4,753,254    5,377,164    741,545 
                
TOTAL LIABILITIES AND EQUITY   8,837,663    10,417,007    1,436,570 

 

   

 

 

X Financial

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

   Three Months Ended June 30,   Six Months Ended June 30, 
(In thousands, except for share and per share data)  2022   2023   2023   2022   2023   2023 
   RMB   RMB   USD   RMB   RMB   USD 
Net revenues                              
Loan facilitation service   471,531    715,503    98,672    980,234    1,296,107    178,741 
Post-origination service   82,304    140,317    19,351    169,648    261,590    36,075 
Financing income   234,756    274,639    37,874    466,031    528,695    72,910 
Other revenue   35,747    89,963    12,406    96,780    138,964    19,164 
Total net revenue   824,338    1,220,422    168,303    1,712,693    2,225,356    306,890 
                               
Operating costs and expenses:                              
Origination and servicing   533,062    669,720    92,359    997,561    1,303,529    179,765 
General and administrative   41,144    44,138    6,087    86,489    89,785    12,382 
Sales and marketing   4,567    3,431    473    9,225    5,468    754 
Provision for accounts receivable and contract assets   25,715    3,175    438    51,771    2,235    308 
Provision for loans receivable   32,224    55,449    7,647    65,964    75,826    10,457 
Reversal of provision for contingent guarantee liabilities   (14,000)   -    -    (14,000)   -    - 
(Reversal of) provision for credit losses on deposits to institutional cooperators   7,803    (200)   (28)   8,534    (234)   (32)
Reversal of provision for credit losses for other financial assets   -    -    -    (765)   -    - 
Total operating costs and expenses   630,515    775,713    106,976    1,204,779    1,476,609    203,634 
                               
Income from operations   193,823    444,709    61,327    507,914    748,747    103,256 
Interest income (expenses), net   1,691    (8,457)   (1,166)   2,718    (10,455)   (1,442)
Foreign exchange loss   (13,102)   (11,798)   (1,627)   (12,146)   (8,781)   (1,211)
Income (loss) from financial investments   (9,626)   12,093    1,668    (9,626)   2,579    356 
Fair value adjustments related to Consolidated Trusts   (3,250)   (247)   (34)   (1,491)   (800)   (110)
Change in fair value of financial guarantee derivative   44,758    667    92    24,625    24,966    3,443 
Other income, net   5,911    6,932    956    26,028    18,263    2,519 
                               
Income before income taxes and gain from equity in affiliates   220,205    443,899    61,216    538,022    774,519    106,811 
                               
Income tax expense   (42,243)   (87,043)   (12,004)   (223,278)   (139,607)   (19,253)
Gain from equity in affiliates, net of tax   7,738    9,436    1,301    10,888    15,725    2,169 
Net income   185,700    366,292    50,513    325,632    650,637    89,727 
Less: net income attributable to non-controlling interests   -    -    -    -    -    - 
Net income attributable to X Financial shareholders   185,700    366,292    50,513    325,632    650,637    89,727 
                               
Net income   185,700    366,292    50,513    325,632    650,637    89,727 
Other comprehensive income, net of tax of nil:                              
Gain (loss) from equity in affiliates   (142)   40    6    70    42    6 
Foreign currency translation adjustments   35,801    27,186    3,749    32,717    19,925    2,748 
Comprehensive income   221,359    393,518    54,268    358,419    670,604    92,481 
Less: comprehensive income attributable to non-controlling interests   -    -    -    -    -    - 
Comprehensive income attributable to X Financial shareholders   221,359    393,518    54,268    358,419    670,604    92,481 
                               
Net income per share—basic   0.56    1.27    0.18    0.98    2.26    0.31 
Net income per share—diluted   0.55    1.25    0.17    0.96    2.21    0.30 
                               
Net income per ADS—basic   3.36    7.62    1.05    5.88    13.56    1.87 
Net income per ADS—diluted   3.30    7.50    1.03    5.76    13.26    1.83 
                               
Weighted average number of ordinary shares outstanding—basic   331,967,010    287,607,857    287,607,857    331,886,487    287,955,066    287,955,066 
Weighted average number of ordinary shares outstanding—diluted   339,516,588    293,863,323    293,863,323    339,436,065    294,078,329    294,078,329 

 

   

 

 

X Financial

Unaudited Reconciliations of GAAP and Non-GAAP Results   

 

   Three Months Ended June 30,   Six Months Ended June 30, 
(In thousands, except for share and per share data)  2022   2023   2023   2022   2023   2023 
   RMB   RMB   USD   RMB   RMB   USD 
GAAP net income   185,700    366,292    50,513    325,632    650,637    89,727 
Less: Income (loss) from financial investments (net of tax of nil)   (9,626)   12,093    1,668    (9,626)   2,579    356 
Less: Impairment losses on financial investments (net of tax of nil)   -    -    -    -    -    - 
Less: Impairment losses on long-term investments (net of tax)   -    -    -    -    -    - 
Add: Share-based compensation expenses (net of tax of nil)   15,362    10,686    1,474    29,337    23,351    3,220 
Non-GAAP adjusted net income   210,688    364,885    50,319    364,595    671,409    92,591 
                               
Non-GAAP adjusted net income per share—basic   0.63    1.27    0.18    1.10    2.33    0.32 
Non-GAAP adjusted net income per share—diluted   0.62    1.24    0.17    1.07    2.28    0.31 
                               
Non-GAAP adjusted net income per ADS—basic   3.78    7.62    1.05    6.60    13.98    1.93 
Non-GAAP adjusted net income per ADS—diluted   3.72    7.44    1.03    6.42    13.68    1.89 
                               
Weighted average number of ordinary shares outstanding—basic   331,967,010    287,607,857    287,607,857    331,886,487    287,955,066    287,955,066 
Weighted average number of ordinary shares outstanding—diluted   339,516,588    293,863,323    293,863,323    339,436,065    294,078,329    294,078,329 

 

   

 


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