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
November 2024
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
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: November 26, 2024
Exhibit 99.1
X Financial Reports
Third Quarter 2024 Unaudited Financial Results
SHENZHEN,
China, November 26, 2024 /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 third
quarter ended September 30, 2024.
Third Quarter
2024 Operational Highlights
| | |
Three Months
Ended
September 30, 2023 | | |
Three Months
Ended
June 30, 2024 | | |
Three Months
Ended
September 30, 2024 | | |
QoQ | | |
YoY | |
| Total loan amount facilitated and originated (RMB
in million) | |
| 29,462 | | |
| 22,749 | | |
| 28,338 | | |
| 24.6 | % | |
| (3.8) | % |
| Number of active borrowers | |
| 1,809,815 | | |
| 1,642,605 | | |
| 1,965,248 | | |
| 19.6 | % | |
| 8.6 | % |
| · | The
total loan amount facilitated and originated1
in the third quarter of 2024 was RMB28,338 million, compared with RMB29,462
million in the same period of 2023. |
| · | Total
number of active borrowers2
was 1,965,248 in the third quarter of 2024, compared with 1,809,815 in the same
period of 2023. |
| | |
As of
September 30, 2023 | | |
As of
June 30, 2024 | | |
As of
September 30, 2024 | |
| Total outstanding loan balance
(RMB in million) | |
| 49,685 | | |
| 41,804 | | |
| 45,766 | |
| Delinquency rates for all outstanding loans
that are past due for 31-60 days | |
| 1.11 | % | |
| 1.29 | % | |
| 1.02 | % |
| Delinquency rates for all outstanding loans
that are past due for 91-180 days | |
| 2.50 | % | |
| 4.38 | % | |
| 3.22 | % |
| · | The
total outstanding loan balance3
as of September 30, 2024 was RMB45,766 million, compared with RMB49,685
million as of September 30, 2023. |
| · | The
delinquency rate for all outstanding loans that are past due for 31-60 days4
as of September 30, 2024 was 1.02%, compared with 1.11% as of September 30,
2023. |
| · | The
delinquency rate for all outstanding loans that are past due for 91-180 days5
as of September 30, 2024 was 3.22%, compared with 2.50% as of September 30,
2023. |
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 excluded in the outstanding loan balance,
except for Xiaoying Housing Loans. As Xiaoying Housing Loans 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 Loans delinquent for more than 60 days in the outstanding
loan balance.
4
Represents the balance of the outstanding principal and accrued outstanding interest for Xiaoying
Credit Loans that were 31 to 60 days past due as a percentage of the total balance of outstanding principal and accrued outstanding interest
for Xiaoying Credit Loans that the Company facilitated and originated as of a specific date. Xiaoying Credit Loans that are delinquent
for more than 60 days are excluded when calculating the denominator. Starting from the first quarter of 2021, substantially
all of the loans facilitated and originated by the Company have been Xiaoying Credit Loans.
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 Xiaoying Credit 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 Xiaoying
Credit Loans that the Company facilitated and originated as of a specific date. Xiaoying Credit Loans that are delinquent for more than
180 days are excluded when calculating the denominator.
Third Quarter
2024 Financial Highlights
| (In
thousands, except for share and per share data) | |
Three
Months Ended
September 30, 2023 | | |
Three
Months Ended
June 30, 2024 | | |
Three
Months Ended
September 30, 2024 | | |
QoQ | | |
YoY | |
| | |
| RMB
| | |
| RMB
| | |
| RMB
| | |
| | | |
| | |
| Total net revenue | |
| 1,396,864 | | |
| 1,372,588 | | |
| 1,582,497 | | |
| 15.3 | % | |
| 13.3 | % |
| Total operating costs and expenses | |
| (961,852 | ) | |
| (909,535 | ) | |
| (1,073,533 | ) | |
| 18.0 | % | |
| 11.6 | % |
| Income from operations | |
| 435,012 | | |
| 463,053 | | |
| 508,964 | | |
| 9.9 | % | |
| 17.0 | % |
| Net income | |
| 347,190 | | |
| 415,303 | | |
| 375,840 | | |
| (9.5) | % | |
| 8.3 | % |
| Non-GAAP adjusted net income | |
| 374,507 | | |
| 374,661 | | |
| 433,625 | | |
| 15.7 | % | |
| 15.8 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income per ADS—basic | |
| 7.26 | | |
| 8.46 | | |
| 7.86 | | |
| (7.1) | % | |
| 8.3 | % |
| Net income per ADS—diluted | |
| 7.02 | | |
| 8.28 | | |
| 7.74 | | |
| (6.5) | % | |
| 10.3 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP adjusted net income per ADS—basic | |
| 7.80 | | |
| 7.62 | | |
| 9.12 | | |
| 19.7 | % | |
| 16.9 | % |
| Non-GAAP adjusted net income per ADS—diluted | |
| 7.56 | | |
| 7.50 | | |
| 8.88 | | |
| 18.4 | % | |
| 17.5 | % |
| · | Total
net revenue in the third quarter of 2024 was RMB1,582.5 million (US$225.5 million), representing
an increase of 13.3% from RMB1,396.9 million in the same period of 2023. |
| · | Income
from operations in the third quarter of 2024 was RMB509.0 million (US$72.5 million), compared
with RMB435.0 million in the same period of 2023. |
| · | Net
income in the third quarter of 2024 was RMB375.8 million (US$53.6 million), compared with
RMB347.2 million in the same period of 2023. |
| · | Non-GAAP6
adjusted net income in the third quarter of 2024 was RMB433.6 million (US$61.8
million), compared with RMB374.5 million in the same period of 2023. |
| · | Net
income per basic and diluted American depositary share (“ADS”) 7
in the third quarter of 2024 was RMB7.86 (US$1.12) and RMB7.74 (US$1.10), compared
with RMB7.26 and RMB7.02, respectively, in the same period of 2023. |
| · | Non-GAAP
adjusted net income per basic and diluted ADS in the third quarter of 2024 was RMB9.12 (US$1.30)
and RMB8.88 (US$1.27), compared with RMB7.80 and RMB7.56, respectively, in the same period
of 2023. |
Mr. Kent
Li, President of the Company, commented, “We are pleased to report another strong quarter,
with loan volumes exceeding our forecast and a significant sequential improvement in asset quality. In the third quarter, we continued
to promptly adjust loan volumes based on risk levels. As asset quality improved, we further intensified our borrower acquisition efforts,
which have yielded very positive results. Both the top and bottom lines continued to grow year-over-year. Non-GAAP adjusted net income
reached a new record high.”
“Specifically
on the operational front, our total loan amount facilitated and originated was down 4% year-on-year but up 25% sequentially to RMB28
billion, above the high end of our guidance. Delinquency rates for all outstanding loans past due for 31-60 days and 91-180 days were
1.02% and 3.22%, respectively, at the end of the quarter, compared to 1.29% and 4.38% a quarter ago and 1.11% and 2.50% a year ago. We
are pleased with these improvements in asset quality and will continue to optimize our risk management system through advanced technology.”
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, (iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net
income per basic share, and (v) adjusted net income per diluted share, 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.
“In
September this year, the Chinese government unveiled a comprehensive stimulus package aimed at improving liquidity, boosting the
property market, stabilizing financial markets and stimulating consumption. We expect this will provide a meaningful boost to the macroeconomic
recovery. As an integral part of the economy, the personal finance market we serve should benefit from this upturn. We have already observed
positive signs in the market and are committed to adjusting loan volumes in line with risk levels. As a result of this favorable environment,
we are raising our guidance and expect our monthly loan volume to exceed RMB10 billion in the fourth
quarter, setting a new record.”
Mr. Frank
Fuya Zheng, Chief Financial Officer of the Company, added, “I'm pleased to report that our strategy of balancing business growth
and profitability continued to pay off. Total net revenue was RMB1.6 billion, up 13% year-on-year and 15% sequentially, while non-GAAP
adjusted net income reached a record high of RMB434 million, up 16% year-on-year and sequentially. As we continue to deliver strong profitability
and execute on our proven strategy, we have full confidence in our future. We will continue to execute our semi-annual dividend policy
and explore opportunities under our share repurchase program to return more value to our shareholders over the long term.”
Third Quarter 2024 Financial Results
Total
net revenue in the third quarter of 2024 increased by 13.3% to RMB1,582.5 million (US$225.5 million)
from RMB1,396.9 million in the same period of 2023, primarily due to growth in various disaggregated revenue items compared with the
same period of 2023. Please refer to analysis of disaggregation of revenue below.
| | |
Three
Months Ended September 30, | | |
| |
| (In thousands,
except for share and per share data) | |
2023 | | |
2024 | | |
YoY | |
| | |
RMB | | |
% of Revenue | | |
RMB | | |
% of Revenue | | |
| |
| Loan facilitation service | |
| 829,385 | | |
| 59.4 | % | |
| 878,282 | | |
| 55.5 | % | |
| 5.9 | % |
| Post-origination service | |
| 168,186 | | |
| 12.0 | % | |
| 186,109 | | |
| 11.8 | % | |
| 10.7 | % |
| Financing income | |
| 300,950 | | |
| 21.5 | % | |
| 335,765 | | |
| 21.2 | % | |
| 11.6 | % |
| Guarantee income | |
| 7,920 | | |
| 0.6 | % | |
| 53,576 | | |
| 3.4 | % | |
| 576.5 | % |
| Other revenue | |
| 90,423 | | |
| 6.5 | % | |
| 128,765 | | |
| 8.1 | % | |
| 42.4 | % |
| Total net revenue | |
| 1,396,864 | | |
| 100.0 | % | |
| 1,582,497 | | |
| 100.0 | % | |
| 13.3 | % |
Loan
facilitation service fees in the third quarter of 2024 increased by 5.9% to RMB878.3 million
(US$125.2 million) from RMB829.4 million in the same period of 2023, primarily due to a decrease in the expected prepayment rates this
quarter compared with the same period of 2023.
Post-origination
service fees in the third quarter of 2024 increased by 10.7% to RMB186.1 million (US$26.5 million)
from RMB168.2 million in the same period of 2023, 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 third quarter of 2024 increased by 11.6% to RMB335.8 million (US$47.8 million)
from RMB301.0 million in the same period of 2023, primarily due to an increase in average loan receivables held by the Company compared
with the same period of 2023.
Guarantee
income in the third quarter of 2024 was RMB53.6 million (US$7.6 million), compared with
RMB7.9 million in the same period of 2023, due to the cumulative effect of increased volume of loans facilitated covered by guarantee
service in the previous quarters compared with the same period of 2023. Revenues from guarantee service are recognized systematically
when the Company released from the underlying risk.
Other
revenue in the third quarter of 2024 increased by
42.4% to RMB128.8 million (US$18.3 million), compared with RMB90.4 million in the same period of 2023, primarily due to an increase in
referral service fee for introducing borrowers to other platforms.
Origination
and servicing expenses in the third quarter of 2024 increased by 13.6% to RMB457.5 million (US$65.2
million) from RMB402.9 million in the same period of 2023, primarily due to the increase in collection expenses resulting from the cumulative
effect of increased volume of loans facilitated and originated in the previous quarters compared with the same period of 2023.
Borrower
acquisitions and marketing expenses in the third quarter of 2024 increased by 20.7% to RMB506.8
million (US$72.2 million) from RMB419.9 million in the same period of 2023, primarily due to intensified efforts in borrower acquisitions
compared with the same period of 2023.
Reversal
of provision for loans receivable in the third quarter of 2024 was RMB35 thousand (US$5 thousand),
compared with provision for loans receivable of RMB53.9 million in the same period of 2023, primarily due to a decrease in the average
estimated default rate compared with the same period of 2023, and partially offset by an increase in loans receivable held by the Company
as a result of the cumulative effect of increased volume of loans facilitated and originated in the previous quarters compared with the
same period of 2023.
Provision
for contingent guarantee liabilities in the third quarter of 2024 was RMB56.4 million (US$8.0
million), compared with RMB41.6 million in the same period of 2023, primarily due to an increase in guarantee liabilities held by
the Company as a result of the increased volume of loans facilitated covered by the guarantee service this quarter compared with the
same period of 2023.
Income
from operations in the third quarter of 2024 was
RMB509.0 million (US$72.5 million), compared with RMB435.0 million in the same period of 2023.
Income
before income taxes and gain from equity in affiliates in the third quarter of 2024 was RMB473.5
million (US$67.5 million), compared with RMB417.5 million in the same period of 2023.
Income
tax expense in the third quarter of 2024 was RMB100.3 million (US$14.3 million), compared with
RMB74.2 million in the same period of 2023.
Net
income in the third quarter of 2024 was RMB375.8 million (US$53.6 million), compared with RMB347.2
million in the same period of 2023.
Non-GAAP
adjusted net income in the third quarter of 2024 was RMB433.6 million (US$61.8 million), compared
with RMB374.5 million in the same period of 2023.
Net
income per basic and diluted ADS in the third quarter of 2024 was RMB7.86 (US$1.12), and RMB7.74
(US$1.10), compared with RMB7.26 and RMB7.02, respectively, in the same period of 2023.
Non-GAAP
adjusted net income per basic and diluted ADS in the third quarter of 2024 was RMB9.12 (US$1.30),
and RMB8.88 (US$1.27), compared with RMB7.80 and RMB7.56 respectively, in the same period of 2023.
Cash
and cash equivalents was RMB1,044.1 million (US$148.8 million) as of September 30, 2024,
compared with RMB1,612.2 million as of June 30, 2024.
Recent Development
Share Repurchase
Plans
On September 4,
2024, the Company further extended the period of the US$30 million share repurchase program until March 31, 2026. In the third quarter
of 2024, the Company repurchased an aggregate of 1,689,722 Class A ordinary shares with 10,038 Class A ordinary shares represented
by ADSs for a total consideration of approximately US$1.3 million. The Company has approximately US$4.1 million remaining for potential
repurchases under its US$30 million share repurchase plan.
As previously disclosed,
on May 30, 2024, the Company announced that its board of directors authorized a new US$20 million share repurchase plan, effective
through November 30, 2025. The Company completed a tender offer in July 2024 under the new share repurchase program, with a
total repurchase amount of approximately US$9.2 million. The Company has approximately US$10.8 million remaining under its US$20 million
plan.
Business Outlook
The
Company expects the total loan amount facilitated and originated for the fourth quarter of 2024
to be between RMB30.0 billion and RMB31.0 billion. The total loan amount facilitated and originated for 2024 is expected to be between
RMB102.6 billion and RMB103.6 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 November 27, 2024 (8:00 PM Beijing / Hong
Kong Time on November 27, 2024).
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 December 4, 2024:
| United States: |
1-877-344-7529 |
| International: |
1-412-317-0088 |
| Passcode: |
3088426 |
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
(loss), (ii) adjusted net income (loss) per basic ADS, (iii) adjusted net income (loss) per diluted ADS, (iv) adjusted
net income per basic share, and (v) adjusted net income per diluted share, 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.
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 7.0176 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 September 30, 2024.
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.
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 differ 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. Rene Vanguestaine
Phone: +86-178-1749 0483
E-mail: rene.vanguestaine@christensencomms.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email:
linda.bergkamp@christensencomms.com
X
Financial
Unaudited
Condensed Consolidated Balance Sheets
| (In
thousands, except for share and per share data) | |
As of December 31,
2023 | | |
As of September 30,
2024 | | |
As of September 30,
2024 | |
| | |
RMB | | |
RMB | | |
USD | |
| ASSETS | |
| | | |
| | | |
| | |
| Cash and cash equivalents | |
| 1,195,352 | | |
| 1,044,144 | | |
| 148,789 | |
| Restricted cash, net | |
| 749,070 | | |
| 489,372 | | |
| 69,735 | |
| Accounts receivable and contract assets,
net | |
| 1,659,588 | | |
| 1,709,428 | | |
| 243,592 | |
| Loans receivable from Credit Loans and
other loans, net | |
| 4,947,833 | | |
| 4,938,195 | | |
| 703,687 | |
| Deposits to institutional cooperators,
net | |
| 1,702,472 | | |
| 1,739,539 | | |
| 247,882 | |
| Prepaid expenses and other current assets,
net | |
| 48,767 | | |
| 40,824 | | |
| 5,817 | |
| Deferred tax assets, net | |
| 135,958 | | |
| 192,644 | | |
| 27,452 | |
| Long term investments | |
| 493,411 | | |
| 491,782 | | |
| 70,078 | |
| Property and equipment, net | |
| 8,642 | | |
| 11,566 | | |
| 1,648 | |
| Intangible assets, net | |
| 36,810 | | |
| 36,236 | | |
| 5,164 | |
| Loan receivable from Housing Loans, net | |
| 8,657 | | |
| 6,494 | | |
| 925 | |
| Financial investments | |
| 608,198 | | |
| 866,804 | | |
| 123,519 | |
| Other non-current
assets | |
| 55,265 | | |
| 53,259 | | |
| 7,589 | |
| TOTAL ASSETS | |
| 11,650,023 | | |
| 11,620,287 | | |
| 1,655,877 | |
| | |
| | | |
| | | |
| | |
| LIABILITIES | |
| | | |
| | | |
| | |
| Payable to investors and institutional
funding partners at amortized cost | |
| 3,584,041 | | |
| 2,406,552 | | |
| 342,931 | |
| Guarantee liabilities | |
| 61,907 | | |
| 102,638 | | |
| 14,626 | |
| Deferred guarantee income | |
| 46,597 | | |
| 106,054 | | |
| 15,113 | |
| Short-term borrowings | |
| 565,000 | | |
| 433,500 | | |
| 61,773 | |
| Accrued payroll and welfare | |
| 86,771 | | |
| 93,047 | | |
| 13,259 | |
| Other tax payable | |
| 289,819 | | |
| 292,939 | | |
| 41,743 | |
| Income tax payable | |
| 446,500 | | |
| 496,489 | | |
| 70,749 | |
| Accrued expenses and other current liabilities | |
| 595,427 | | |
| 732,591 | | |
| 104,394 | |
| Dividend payable | |
| 59,226 | | |
| - | | |
| - | |
| Other non-current liabilities | |
| 37,571 | | |
| 30,915 | | |
| 4,405 | |
| Deferred tax liabilities | |
| 30,040 | | |
| 29,003 | | |
| 4,133 | |
| TOTAL LIABILITIES | |
| 5,802,899 | | |
| 4,723,728 | | |
| 673,126 | |
| | |
| | | |
| | | |
| | |
| Commitments and Contingencies | |
| | | |
| | | |
| | |
| Equity: | |
| | | |
| | | |
| | |
| Common shares | |
| 207 | | |
| 207 | | |
| 29 | |
| Treasury stock | |
| (111,520 | ) | |
| (155,007 | ) | |
| (22,088 | ) |
| Additional paid-in capital | |
| 3,196,942 | | |
| 3,194,909 | | |
| 455,271 | |
| Retained earnings | |
| 2,692,018 | | |
| 3,788,885 | | |
| 539,912 | |
| Other comprehensive
income | |
| 69,477 | | |
| 67,568 | | |
| 9,628 | |
| Total X Financial shareholders' equity | |
| 5,847,124 | | |
| 6,896,562 | | |
| 982,752 | |
| Non-controlling interests | |
| - | | |
| - | | |
| - | |
| TOTAL EQUITY | |
| 5,847,124 | | |
| 6,896,562 | | |
| 982,752 | |
| | |
| | | |
| | | |
| | |
| TOTAL LIABILITIES
AND EQUITY | |
| 11,650,023 | | |
| 11,620,290 | | |
| 1,655,878 | |
X
Financial
Unaudited
Condensed Consolidated Statements of Comprehensive Income
| | |
Three
Months Ended September 30, | | |
Nine
Months Ended September 30, | |
| (In
thousands, except for share and per share data) | |
2023 | | |
2024 | | |
2024 | | |
2023 | | |
2024 | | |
2024 | |
| | |
RMB | | |
RMB | | |
USD | | |
RMB | | |
RMB | | |
USD | |
| Net revenues | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Loan
facilitation service | |
| 829,385 | | |
| 878,282 | | |
| 125,154 | | |
| 2,125,492 | | |
| 2,224,681 | | |
| 317,015 | |
| Post-origination
service | |
| 168,186 | | |
| 186,109 | | |
| 26,520 | | |
| 429,775 | | |
| 493,520 | | |
| 70,326 | |
| Financing
income | |
| 300,950 | | |
| 335,765 | | |
| 47,846 | | |
| 829,645 | | |
| 1,021,405 | | |
| 145,549 | |
| Guarantee
income | |
| 7,920 | | |
| 53,576 | | |
| 7,635 | | |
| 7,920 | | |
| 132,067 | | |
| 18,819 | |
| Other
revenue | |
| 90,423 | | |
| 128,765 | | |
| 18,349 | | |
| 229,388 | | |
| 291,387 | | |
| 41,522 | |
| Total
net revenue | |
| 1,396,864 | | |
| 1,582,497 | | |
| 225,504 | | |
| 3,622,220 | | |
| 4,163,060 | | |
| 593,231 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating
costs and expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Origination
and servicing1 | |
| 402,939 | | |
| 457,545 | | |
| 65,200 | | |
| 1,123,027 | | |
| 1,299,164 | | |
| 185,129 | |
| Borrower
acquisitions and marketing1 | |
| 419,887 | | |
| 506,758 | | |
| 72,212 | | |
| 1,023,948 | | |
| 1,078,768 | | |
| 153,723 | |
| General
and administrative1 | |
| 40,200 | | |
| 49,499 | | |
| 7,054 | | |
| 114,833 | | |
| 127,047 | | |
| 18,104 | |
| Provision
for accounts receivable and contract assets | |
| 3,748 | | |
| 4,799 | | |
| 684 | | |
| 5,983 | | |
| 22,470 | | |
| 3,202 | |
| (Reversal
of) provision for loans receivable | |
| 53,946 | | |
| (35 | ) | |
| (5 | ) | |
| 129,772 | | |
| 157,370 | | |
| 22,425 | |
| Provision
for contingent guarantee liabilities | |
| 41,594 | | |
| 56,366 | | |
| 8,032 | | |
| 41,594 | | |
| 125,635 | | |
| 17,903 | |
| Change
in fair value of financial guarantee derivative2 | |
| - | | |
| - | | |
| - | | |
| (24,966 | ) | |
| - | | |
| - | |
| Fair
value adjustments related to Consolidated Trusts2 | |
| (268 | ) | |
| - | | |
| - | | |
| 531 | | |
| - | | |
| - | |
| (Reversal
of) provision for credit losses for deposits and other financial assets | |
| (194 | ) | |
| (1,399 | ) | |
| (199 | ) | |
| (427 | ) | |
| 4,049 | | |
| 577 | |
| Total
operating costs and expenses | |
| 961,852 | | |
| 1,073,533 | | |
| 152,978 | | |
| 2,414,295 | | |
| 2,814,503 | | |
| 401,063 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income
from operations | |
| 435,012 | | |
| 508,964 | | |
| 72,526 | | |
| 1,207,925 | | |
| 1,348,557 | | |
| 192,168 | |
| Interest income
(expenses), net | |
| (7,322 | ) | |
| 1,211 | | |
| 173 | | |
| (17,778 | ) | |
| (4,898 | ) | |
| (698 | ) |
| Foreign exchange
(gain) loss | |
| 1,526 | | |
| 4,881 | | |
| 696 | | |
| (7,255 | ) | |
| (3,351 | ) | |
| (478 | ) |
| Income (loss)
from financial investments | |
| (16,490 | ) | |
| (47,635 | ) | |
| (6,788 | ) | |
| (13,911 | ) | |
| 53,887 | | |
| 7,679 | |
| Other income,
net | |
| 4,742 | | |
| 6,048 | | |
| 862 | | |
| 23,005 | | |
| 9,437 | | |
| 1,345 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income
before income taxes and gain from equity in affiliates | |
| 417,468 | | |
| 473,469 | | |
| 67,469 | | |
| 1,191,986 | | |
| 1,403,632 | | |
| 200,016 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income tax
expense | |
| (74,172 | ) | |
| (100,331 | ) | |
| (14,297 | ) | |
| (213,779 | ) | |
| (254,924 | ) | |
| (36,326 | ) |
| Gain
from equity in affiliates, net of tax | |
| 3,894 | | |
| 2,702 | | |
| 385 | | |
| 19,619 | | |
| 5,572 | | |
| 794 | |
| Net income | |
| 347,190 | | |
| 375,840 | | |
| 53,557 | | |
| 997,826 | | |
| 1,154,280 | | |
| 164,484 | |
| Less: net
income attributable to non-controlling interests | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net income
attributable to X Financial shareholders | |
| 347,190 | | |
| 375,840 | | |
| 53,557 | | |
| 997,826 | | |
| 1,154,280 | | |
| 164,484 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income | |
| 347,190 | | |
| 375,840 | | |
| 53,557 | | |
| 997,826 | | |
| 1,154,280 | | |
| 164,484 | |
| Other
comprehensive income, net of tax of nil: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gain (loss)
from equity in affiliates | |
| 4 | | |
| (449 | ) | |
| (64 | ) | |
| 45 | | |
| (418 | ) | |
| (60 | ) |
| Income from
financial investments | |
| - | | |
| 1,580 | | |
| 225 | | |
| - | | |
| 6,100 | | |
| 869 | |
| Foreign
currency translation adjustments | |
| (6,301 | ) | |
| (12,778 | ) | |
| (1,821 | ) | |
| 13,624 | | |
| (7,590 | ) | |
| (1,082 | ) |
| Comprehensive
income | |
| 340,893 | | |
| 364,193 | | |
| 51,897 | | |
| 1,011,495 | | |
| 1,152,372 | | |
| 164,211 | |
| Less:
comprehensive income attributable to non-controlling interests | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Comprehensive
income attributable to X Financial shareholders | |
| 340,893 | | |
| 364,193 | | |
| 51,897 | | |
| 1,011,495 | | |
| 1,152,372 | | |
| 164,211 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income
per share—basic | |
| 1.21 | | |
| 1.31 | | |
| 0.19 | | |
| 3.47 | | |
| 3.96 | | |
| 0.56 | |
| Net income
per share—diluted | |
| 1.17 | | |
| 1.29 | | |
| 0.18 | | |
| 3.43 | | |
| 3.87 | | |
| 0.55 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income
per ADS—basic | |
| 7.26 | | |
| 7.86 | | |
| 1.12 | | |
| 20.82 | | |
| 23.76 | | |
| 3.39 | |
| Net income
per ADS—diluted | |
| 7.02 | | |
| 7.74 | | |
| 1.10 | | |
| 20.58 | | |
| 23.22 | | |
| 3.31 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of ordinary
shares outstanding—basic | |
| 287,806,370 | | |
| 285,857,203 | | |
| 285,857,203 | | |
| 287,412,729 | | |
| 291,622,784 | | |
| 291,622,784 | |
| Weighted average number of ordinary
shares outstanding—diluted | |
| 297,114,127 | | |
| 292,339,641 | | |
| 292,339,641 | | |
| 291,209,263 | | |
| 298,036,305 | | |
| 298,036,305 | |
1
Starting in the first quarter of 2024, management has concluded to separate expenses related to borrower acquisitions from origination
and servicing expenses and indirect expenses of the borrower acquisitions from general and administrative expenses to a single line item
as theses expenses become more and more significant and thus deemed to be useful to financial statement users. Furtherly, management
has determined to embed the sales and marketing expenses, which is not considered as material, in other line item. In conclusion, management
has decided to combine these two line items into one captioned borrower acquisitions and marketing expenses. Management has correspondingly
conformed prior period presentation to current period presentation to enhance comparability. This change in presentation does not affect
any subtotal line on the face of consolidated statements of comprehensive income.
| |
Three Months
Ended September 30, 2023 | | |
| |
| (In thousands, except for
share and per share data) | |
before
re-grouping | | |
after re-grouping | | |
Changes | |
| | |
RMB | | |
RMB | | |
RMB | |
| Origination and servicing | |
| 811,078 | | |
| 402,939 | | |
| (408,139 | ) |
| Borrower acquisitions and marketing expenses | |
| - | | |
| 419,887 | | |
| 419,887 | |
| Sales and marketing | |
| 3,360 | | |
| - | | |
| (3,360 | ) |
| General and administrative | |
| 48,588 | | |
| 40,200 | | |
| (8,388 | ) |
2
Starting in the first quarter of 2024, management has considered the facts that fair value change related to financial guarantee
services and Consolidated Trusts are generated from ordinary course of businesses, and has concluded to reclass the amount to captions
above total operating costs and expenses. Prior to the reclassification, management classified all amount of fair value changes to captions
below total operating costs and expenses. This reclassification does not have impact on net income for any prior periods presented.
X
Financial
Unaudited
Reconciliations of GAAP and Non-GAAP Results
| | |
Three
Months Ended September 30, | | |
Nine
Months Ended September 30, | |
| (In
thousands, except for share and per share data) | |
2023 | | |
2024 | | |
2024 | | |
2023 | | |
2024 | | |
2024 | |
| | |
RMB | | |
RMB | | |
USD | | |
RMB | | |
RMB | | |
USD | |
| GAAP
net income | |
| 347,190 | | |
| 375,840 | | |
| 53,557 | | |
| 997,826 | | |
| 1,154,280 | | |
| 164,484 | |
| Less: Income
(loss) from financial investments (net of tax of nil) | |
| (16,490 | ) | |
| (47,635 | ) | |
| (6,788 | ) | |
| (13,911 | ) | |
| 53,887 | | |
| 7,679 | |
| 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) | |
| 10,827 | | |
| 10,150 | | |
| 1,446 | | |
| 34,178 | | |
| 30,096 | | |
| 4,289 | |
| Non-GAAP
adjusted net income | |
| 374,507 | | |
| 433,625 | | |
| 61,791 | | |
| 1,045,915 | | |
| 1,130,489 | | |
| 161,094 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP adjusted
net income per share—basic | |
| 1.30 | | |
| 1.52 | | |
| 0.22 | | |
| 3.64 | | |
| 3.88 | | |
| 0.55 | |
| Non-GAAP adjusted
net income per share—diluted | |
| 1.26 | | |
| 1.48 | | |
| 0.21 | | |
| 3.59 | | |
| 3.79 | | |
| 0.54 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP adjusted
net income per ADS—basic | |
| 7.80 | | |
| 9.12 | | |
| 1.30 | | |
| 21.84 | | |
| 23.28 | | |
| 3.32 | |
| Non-GAAP adjusted
net income per ADS—diluted | |
| 7.56 | | |
| 8.88 | | |
| 1.27 | | |
| 21.54 | | |
| 22.74 | | |
| 3.24 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of ordinary
shares outstanding—basic | |
| 287,806,370 | | |
| 285,857,203 | | |
| 285,857,203 | | |
| 287,412,729 | | |
| 291,622,784 | | |
| 291,622,784 | |
| Weighted average number of ordinary
shares outstanding—diluted | |
| 297,114,127 | | |
| 292,339,641 | | |
| 292,339,641 | | |
| 291,209,263 | | |
| 298,036,305 | | |
| 298,036,305 | |
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