SHENZHEN, China, June 29, 2020 /PRNewswire/ -- X Financial (NYSE:
XYF) (the "Company" or "we"), a leading technology-driven personal
finance company in China, today
announced its unaudited financial results for the first quarter
ended March 31, 2020.
First Quarter 2020 Financial Highlights
- Net revenues decreased by 31.9% to RMB529.0 million (US$74.5
million) from RMB776.4 million
in the same period of 2019.
- Loss from operations was RMB130.0
million (US$18.3 million),
compared with income from operations of RMB279.1 million in the same period of 2019.
- Net loss attributable to X Financial shareholders was
RMB196.3 million (US$27.7 million), compared with net income
attributable to X Financial shareholders of RMB209.0 million in the same period of 2019.
- Non-GAAP[1] adjusted
net loss attributable to X Financial shareholders was RMB159.9 million (US$22.5
million), compared with non-GAAP adjusted net income
attributable to X Financial shareholders of RMB251.2 million in the same period of 2019.
- Net loss per basic and diluted American depositary share
("ADS")[2] were
RMB1.22 (US$0.17) and RMB1.22 (US$0.17)
respectively, compared with net income per basic and diluted
American depositary share ("ADS") of RMB1.36 and RMB1.30, respectively, in the same period of
2019.
- Non-GAAP adjusted net loss per basic and adjusted diluted ADS
were RMB1.00 (US$0.14) and RMB1.00 (US$0.14),
respectively, compared with non-GAAP adjusted net income per basic
and adjusted diluted ADS of RMB1.64
and RMB1.56, respectively, in the
same period of 2019.
First Quarter 2020 Operational Highlights
- The total loan facilitation amount[3] was RMB6,823 million, representing a decrease of
29.1% from RMB9,629 million in the
same period of 2019 and a decrease of 23.2% from RMB8,890 million in the fourth quarter of
2019.
- The loan facilitation amount of Xiaoying Credit Loan[4] was RMB4,631 million, representing a decrease of
41.6% from RMB7,932 million in the
same period of 2019 and a decrease of 25.1% from RMB6,185 million in the fourth quarter of 2019.
Xiaoying Credit Loan accounted for
67.9% of the Company's total loan facilitation amount, compared
with 82.4% in the same period of 2019.
- The total outstanding loan balance[5] as of March
31, 2020 was RMB14,370
million, compared with RMB20,187
million as of March 31, 2019
and RMB17,267 million as of
December 31, 2019.
- The average loan amount per transaction[6] of Xiaoying Term
Loan[7] was RMB15,745, representing an increase of 37.7% from
RMB11,434 in the same period of 2019
and an increase of 7.8% from RMB14,611 for the fourth quarter of 2019.
- The average consumption amount per user[8] of Xiaoying Revolving
Loan[9] was RMB 8,582, representing an increase of 3.8% from
RMB8,268 for the fourth quarter of
2019.
- The delinquency rates for all outstanding loans that are past
due for 31-90 days and 91–180 days as of March 31, 2020 were 6.71% and 7.12%,
respectively, compared with 4.05% and 5.11%, respectively, as of
December 31, 2019, and 3.56% and
5.21%, respectively, as of March 31,
2019.
- The number of cumulative borrowers, each of whom made at least
one transaction on the Company's lending platform, as of
March 31, 2020 was 5,732,385.
- Total cumulative registered users reached 42.6 million as of
March 31, 2020.
- Institutional funding accounted for 81.7% of the total loan
facilitation amount, compared with 50.2% in the fourth quarter of
2019.
- The Gross Merchandise Value ("GMV")[10] of Xiaoying Online
Mall[11] was
RMB60.8 million, representing a
decrease of 62.2% from RMB160.9
million in the fourth quarter of 2019.
Mr. Justin Tang, the Founder,
Chief Executive Officer and Chairman of the Company, commented,
"Despite challenges created by the Coronavirus Disease (the
"COVID-19") pandemic adversely impacting our operating environment,
we made meaningful progress in expanding institutional funding for
all new loan products originated on our platform during the
quarter. Institutional funding accounted for 81.7% of the loans
facilitated through our platform in the first quarter, representing
an increase from 50.2% in the previous quarter. We rapidly built
upon this with institutional funding which
accounts for 100% of funding for the loans facilitated through our
platform now."
"Maintaining full compliance with current regulations and
adapting to the ever changing macroeconomic environment have been
critical to our success so far. We continued to diversify our
institutional funding sources and deepen our relationships with
financial partners. Building our platform out to scale and
strengthening the confidence our funding partners have in us is an
important part of our long-term strategy as we continue to provide
the most user-friendly and convenient financial services to
borrowers all over China.
"As of March 31, 2020, the total
credit lines provided by our institutional partners expanded to
RMB58.6 billion from RMB46.7 billion as of December 31, 2019. Given the current
uncertainties in the market, this further proves that our asset
quality and risk management capabilities continue to be well
recognized by our institutional partners despite the impact from
the pandemic. We are currently in discussions with a number of our
partners about further reducing our funding costs."
"We continue to adopt a strategic and disciplined approach to
risk management and have implemented stricter criteria when
assessing borrowers because we believe it is even more important
now for the sustainability of our business. An adjustment period is
therefore expected and is reflected in the lower number of active
borrowers during the quarter. The number of active borrowers this
quarter was 428,366, representing a decrease of 29.7% from 609,368
in the fourth quarter of 2019. Evaluating borrowers with stricter
criteria is critical to reducing loan default rates at their later
stages and strengthening our ability to generate stronger results
when the market is expected to rebound during the second half of
2020".
"In conclusion, there is no doubt that economic disruption from
the COVID-19 pandemic will force all businesses that rely on
consumption to once again adjust their strategies rapidly. Most
importantly, the fundamental drivers underpinning the enormous
growth opportunities in China's
personal finance industry have not changed. As we continue to
evolve from a pure financial services provider to a more
comprehensive business services provider, we are confident that we
are well positioned to not just survive these challenging market
conditions, but thrive when the market rebounds. We are committed
to providing our customers the most user-friendly, convenient and
comprehensive financial services, in addition to the best loan
solutions on the market."
Mr. Simon Cheng, President of the
Company, added, "Over the past few quarters, we continued to ramp
up our technology-driven risk infrastructure and strengthened
customer acquisition. This solid foundation allowed us to
successfully manage a rise in delinquency rates during the peak of
the pandemic and has positioned us to emerge even stronger. The
downturn in economic activity created by the pandemic has begun to
gradually improve. While restrictions put in place to contain the
pandemic continue to ease and life returns to normal, we have seen
an improvement in delinquency rates in April
2020. We also saw a significant rebound of both loan
facilitation amount and number of active borrowers of Xiaoying Credit Loan in April, which strengthens
our confidence in the gradual recovery taking place in China."
"Overall, the evolving health crisis and growing impact from
COVID-19 have been weighing heavily on consumer sentiment in
China, which is reflected in the
performance of Yaoqianhua and Xiaoying Online Mall during the
quarter. In order to control the impact of COVID-19, we have taken
a more stringent risk policy. The GMV of Xiaoying Online Mall
declined 62.2% from the fourth quarter of 2019 to RMB60.8 million. The number of active users of
Yaoqianhua reached around 463,000 as of March 31,2020 as compared to approximately
408,000 as of December 31, 2019.
Transaction volumes for Yaoqianhua, our revolving loan product
previously known as Xiaoying Wallet,
declined slightly to RMB2,192 million
from RMB2,204 million last quarter.
Yaoqianhua's outstanding loan balance increased to RMB1,801 million as of March 31, 2020 from RMB1,503 million as of December 31, 2019 and now has an approved
cumulative credit line of RMB11
billion with a credit utilization rate of around 28.0% as of
March 31, 2020."
"We believe the pandemic has significantly affected consumer
behavior and at the same time created many more new opportunities
for us to drive future growth. In addition, China's central and local governments have
recently begun rolling out a series of policies to guide businesses
as they resume production and jump-start domestic consumption once
again. Driven by supportive government policies in place and with
consumer sentiment steadily recovering, we anticipate a strong but
gradual recovery in Yaoqianhua and Xiaoying Online Mall."
"We have also hit 100% of our institutional funding target. We remain in active negotiations
with funding partners to further decrease funding costs and are in
talks with other prospective financial partners which should bring
down funding costs even further. At present, we have ample funding
sources to meet growing demand as consumer sentiment
improves."
Mr. Kevin Zhang, Chief Financial
Officer of the Company, added, "We delivered solid results in the
first quarter relative to guidance as we anticipated that it would
be a challenging quarter. The total loan facilitation amount
was RMB6,823 million, representing a decline compared with our
previously announced guidance."
"We are taking decisive action to streamline expenses against
weaker top-line growth, but remain confident that demand for our
highly-customized personal finance solutions will once again
strengthen as the recovery from the pandemic unfolds. Our revenue
and net income decreased both quarter-over-quarter and
year-over-year. Even though the total number of loans
facilitated[12] of
Xiaoying Term Loan in the first quarter decreased year-over-year,
the average loan amount per transaction was RMB15,745, an increase of 37.7% from the same
period of 2019 and an increase of 7.8% sequentially. The average
consumption amount per user of Xiaoying Revolving Loan also
increased 3.8% from the fourth quarter of 2019 to RMB8,582."
"We are also pleased to see total cumulative registered users on
the platform reach 42.6 million as of March
31, 2020, demonstrating the continued value that we are
able to offer borrowers, even during such challenging market
conditions. The number of active borrowers during the quarter
decreased by 29.7%. The delinquency rates for all outstanding loans
that are past due for 31-90 days and 91–180 days as of March 31, 2020 were 6.71% and 7.12% respectively,
compared with 4.05% and 5.11%, respectively as of December 31, 2019.
"The percentage of loan products we facilitated that were
covered by ZhongAn Insurance decreased further to 67.7% during the
quarter as we continue to reduce our insurance coverage rate to
lower our customer borrowing costs. In its place, we have expanded
our partnerships with additional third-party, high-quality
financial guarantee companies to strengthen trust in the quality of
our underlying assets and risk management systems."
"We are squarely focused on our mission to create more value for
our customers and shareholders. After successfully adapting to the
regulatory changes in 2019, we are now navigating the ongoing
impact of the health crisis is having on the industry in 2020.
While regulatory and capital requirements continue to put pressure
on the sustainability of the sector this year, we remain in full
compliance with current regulations and are confident in our
ability to stand out among our peers by capitalizing on market
consolidation and increasing protection for our investors. We will
continue to prioritize operational efficiency in driving long-term
value for our shareholders."
[1] The Company uses
in this press release the following non-GAAP financial measures:
(i) adjusted net income, (ii) adjusted net income attributable to X
Financial shareholders, (iii) adjusted net income per basic ADS,
and (iv) adjusted net income per diluted ADS, each of which
excludes share-based compensation expense. For more information on
non-GAAP financial measure, please see the section of "Use of
Non-GAAP Financial Measures Statement" and the table captioned
"Reconciliations of GAAP and Non-GAAP Results" set forth at the end
of this press release.
|
[2] Each American
depositary share ("ADS") represents two Class A ordinary
shares.
|
[3] Represents the
total amount of loans that X Financial facilitated during the
relevant period.
|
[4] X Financial
integrated Xiaoying Card Loan and Xiaoying Preferred Loan into one
general product category, Xiaoying Credit Loan, in 2018.
|
[5] Represents the
total amount of loans outstanding for loans X Financial facilitated
at the end of the relevant period. Loans that are delinquent for
more than 180 days are charged-off and are excluded in the
calculation of delinquency rate by balance, except for Xiaoying
Housing Loan. Xiaoying Housing Loan is a secured loan product and
the Company is entitled to payment by exercising its rights to the
collateral. X Financial does not charge off the loans delinquent
for more 180 days and such loans are included in the calculation of
delinquency rate by balance.
|
[6] Calculated by
dividing the total loan facilitation amount by the number of loans
facilitated during the relevant period.
|
[7] Xiaoying Term
Loan refers to the loan's with fixed repayment periods including
Xiaoying Credit Loan, Xiaoying Housing Loan, Internet
Channel.
|
[8] Calculated by
dividing the total amount of consumption by the number of active
users during the relevant period.
|
[9] Xiaoying
Revolving Loan refers to the loans with revolving credit, including
Yaoqianhua which was previously named as Xiaoying
Wallet.
|
[10] Gross
Merchandise Volume ("GMV") refers a total sales value for
merchandise sold through Xiaoying Online Mall.
|
[11] Xiaoying Online
Mall was launched in March 2019 and is a product that provides loan
installments to our individual customers enabling them to purchase
goods online
|
[12] Represents the
total number of transactions of loan facilitation during the
relevant period.
|
First Quarter 2020 Financial Results
Net revenues decreased by 31.9% to RMB529.0 million (US$74.5
million) from RMB776.4 million
in the same period of 2019, primarily due to a decrease in
transaction volumes as a more stringent risk policy been taken to
address COVID-19 impact, which was also partially offset by an
increase in the proportion of net revenue generated by the loans
facilitated through the Consolidated Trusts which was recorded over
the life of the underlying financing using the effective interest
method.
Loan facilitation service fees under the direct model
decreased by 60.7% to RMB246.0 million (US$34.6 million) from RMB626.4 million in the same period of 2019,
primarily due to a decrease in the total transaction volumes under
the direct model compared with the same period of 2019.
Loan facilitation service fees under the intermediary
model increased by 5.3% to RMB37.0 million (US$5.2 million) from RMB35.2 million in the same period of 2019,
primarily due to an increase in the total volume of products
offered through the intermediary model as the Company continuing
the main strategy to attract more institutional investors
throughout 2020.
Post-origination service fees decreased by
12.2% to RMB64.1 million
(US$9.0 million) from
RMB73.0 million in the same period of
2019, as a result of the cumulative effect of decreased 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 increased by 880.9% to RMB174.6 million (US$24.6 million) from RMB17.8 million in the same period of 2019, which
was consistent with the increase of average loan balances held by
the Consolidated Trusts due to the establishment of new trusts
since the second half of 2019.
Other revenue decreased by 69.7% to RMB7.3 million (US$1.0 million) from RMB24.1 million in the same period of 2019,
primarily due to a decrease in penalty fees.
Origination and servicing expenses increased by
26.2% to RMB424.9 million
(US$59.9 million) from
RMB336.5 million in the same period
of 2019, primarily due to the following factors: (i) an increase in
customer acquisition costs for the revolving credit product,
Yaoqianhua, and (ii) an increase in interest expense related to
loans facilitated through the Consolidated Trusts.
General and administrative expenses increased by
24.3% to RMB69.9 million
(US$9.9 million) from
RMB56.3 million in the same period of
2019, primarily due to an increase in management fee paid to
third-party trusts companies compared with the same period of
2019.
Sales and marketing expenses decreased by 61.5% to
RMB11.8 million (US$1.7 million) from RMB30.7 million in the same period of 2019,
primarily due to a reduction in promotional and advertising
expenses since the outbreak of COVID-19.
Provision for contingent guarantee liabilities was
RMB17.9 million (US$2.5 million), primarily attributable to the
increase, caused by the pandemic, in estimated default rate of the
loans subject to guarantee liabilities facilitated in prior
periods.
Provision for accounts receivable and contract
assets increased by 23.7% to RMB82.1 million (US$11.6 million) from RMB66.4 million in the same period of 2019,
primarily due to a combined effect of (a) the new current expected
credit loss model that took into account the deterioration in the
economic outlook caused by the COVID-19 pandemic, and (b) an
increase in the estimated default rates since the COVID-19
outbreak.
Provision for loans receivable was RMB42.8 million (US$6.0
million), compared with RMB7.5
million in the same period of 2019, primarily due to the
increase of expected credit loss for revolving loan product when
compared with the first quarter of 2019.
Loss from operation was RMB130.0 million (US$18.3
million), compared with income from operation
of RMB279.1 million in the same period of 2019.
Loss before income taxes and gain from equity in
affiliates was RMB228.3 million (US$32.2 million), compared with income
before income taxes and gain from equity in affiliates of
RMB259.0 million in the same period
of 2019.
Income tax benefit was RMB31.2 million (US$4.4 million), compared with income tax
expense of RMB53.6 million in the
same period of 2019, primarily arose from the net operating
loss.
Net loss attributable to X Financial
shareholders was RMB196.3
million (US$27.7 million),
compared with net income attributable to X Financial shareholders
of RMB209.0 million in the same
period of 2019.
Non-GAAP adjusted net loss attributable to X Financial
shareholders was RMB159.9 million
(US$22.5 million), compared with
non-GAAP adjusted net income attributable to X Financial
shareholders of RMB251.2 million in
the same period of 2019.
Net loss per basic and diluted ADS were RMB1.22 (US$0.17)
and RMB1.22 (US$0.17), respectively, compared with net income
per basic and diluted ADS of RMB1.36
and RMB1.30, respectively, in the
same period of 2019.
Non-GAAP adjusted net loss per basic and diluted
ADS were RMB1.00
(US$0.14) and RMB1.00 (US$0.14),
respectively, compared with non-GAAP adjusted net income per basic
and diluted ADS of RMB1.64 and
RMB1.56, respectively, in the same
period of 2019.
Cash and cash equivalents was RMB611.6 million (US$86.2 million) as of March 31, 2020, compared with RMB1,006.0 million as of December 31, 2019.
Business Outlook
As the Company continues to assess the impact of the COVID-19
outbreak and market indicators around the recovery in the first
half of 2020, it is anticipated that the Company's total loan
facilitation amount for the second quarter of 2020 will also be
negatively impacted and the Company expects a second-quarter loss
with drop in revenue. The Company plans to provide a business
update in the second quarter 2020 Earnings Release. This forecast
reflects the Company's current and preliminary views, which are
subject to change.
Conference Call
X Financial's management team will host an earnings conference
call at 8:00 AM U.S. Eastern Time on
Tuesday, June 30, 2020 (8:00 PM Beijing / Hong Kong Time on the same
day).
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 July 7,
2020:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10145375
|
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
technology-driven personal finance company
in China focused on meeting the huge demand for credit
from individuals and small-to-medium-sized enterprise owners. The
Company's proprietary big data-driven risk control system, WinSAFE,
builds risk profiles of prospective borrowers using a
variety data-driven credit assessment methodology to
accurately evaluate a borrower's value, payment capability, payment
attitude and overall creditworthiness. X Financial has established
a strategic partnership with ZhongAn Online P&C Insurance Co.,
Ltd. in multiple areas of its business operations to directly
complement its cutting-edge risk management and credit assessment
capabilities. ZhongAn Online P&C Insurance Co., Ltd. provides
credit insurance on X Financial's investment products
which significantly enhances investor confidence and allows the
Company to attract a diversified and low-cost funding base from
individuals, enterprises and financial institutions to support its
growth. X Financial leverages financial technology to provide
convenient, efficient, and secure investment services to a wide
range of high-quality borrowers and mass affluent investors which
complements traditional financial institutions and helps to promote
the development of inclusive finance in China.
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 also believe that the
use of the non-GAAP financial measures facilitates investors'
assessment of our operating performance.
We use in this press release the following non-GAAP financial
measures: (i) adjusted net income, (ii) adjusted net income
attributable to X Financial shareholders, (iii) adjusted net income
per basic ADS, and (iv) adjusted net income per diluted ADS, each
of which excludes share-based compensation expense. These non-GAAP
financial measures are not defined under U.S. GAAP and are not
presented in accordance with U.S. GAAP. 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.
New Accounting Pronouncements
In June 2016, the FASB issued
Accounting Standard Update ("ASU") No. 2016-13, Financial
Instruments—Credit Losses (Topic 326): Measurement of Credit Losses
on Financial Instruments, which requires the measurement of all
expected credit losses for financial assets held at the reporting
date based on historical experience, current conditions, and
reasonable and supportable forecasts. This ASU requires enhanced
disclosures to help investors and other financial statement users
better understand significant estimates and judgments used in
estimating credit losses, as well as the credit quality and
underwriting standards of the Group's portfolio. These disclosures
include qualitative and quantitative requirements that provide
additional information about the amounts recorded in the financial
statements. The Company have adopted the new standard effective
January 1, 2020, using a modified
retrospective basis under which prior comparative periods are not
restated. The impact of the adoption of this guidance on the
Group's consolidated statements of comprehensive income after tax
amounts to RMB17.2 million as of
January 1, 2020.
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 RMB7.0989 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 March 31,
2020.
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
following: 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.
For more information, please contact:
X Financial
Mr. Kevin Zhang
E-mail: ir@xiaoying.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
X
Financial
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
(In thousands,
except for share and per share data)
|
As of December 31,
2019
|
As of March 31,
2020
|
|
RMB
|
RMB
|
USD
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
1,005,980
|
611,598
|
86,154
|
Restricted
cash
|
514,323
|
964,185
|
135,822
|
Accounts
receivable and contract assets, net of
allowance for doubtful accounts
|
771,154
|
441,168
|
62,146
|
Loans
receivable from Xiaoying Credit Loans and
Revolving Loans, net
|
289,553
|
222,356
|
31,323
|
Loans at fair
value
|
2,782,333
|
2,197,569
|
309,565
|
Prepaid
expenses and other current assets
|
1,226,170
|
2,013,654
|
283,658
|
Financial
guarantee derivative
|
719,962
|
498,980
|
70,290
|
Deferred tax
assets, net
|
465,441
|
520,232
|
73,283
|
Long term
investments
|
292,142
|
295,630
|
41,644
|
Property and
equipment, net
|
20,139
|
18,027
|
2,539
|
Intangible
assets, net
|
35,127
|
34,869
|
4,912
|
Loan receivable
from Xiaoying Housing Loans, net
|
89,536
|
91,460
|
12,884
|
Other
non-current assets
|
68,772
|
48,121
|
6,779
|
TOTAL
ASSETS
|
8,280,632
|
7,957,849
|
1,120,999
|
|
|
|
|
LIABILITIES
|
|
|
|
Payable to
investors at fair value of the Consolidated
Trusts
|
3,006,349
|
2,510,839
|
353,694
|
Guarantee
liabilities
|
17,475
|
32,305
|
4,551
|
Short-term bank
borrowings
|
-
|
341,495
|
48,105
|
Accrued payroll
and welfare
|
63,649
|
37,145
|
5,233
|
Other tax
payable
|
58,086
|
68,675
|
9,674
|
Income tax
payable
|
340,996
|
321,845
|
45,337
|
Deposit payable
to channel cooperators
|
108,923
|
58,293
|
8,212
|
Accrued
expenses and other liabilities
|
274,440
|
339,343
|
47,803
|
Other
non-current liabilities
|
42,300
|
27,690
|
3,901
|
Deferred tax
liabilities
|
1,309
|
649
|
91
|
TOTAL
LIABILITIES
|
3,913,527
|
3,738,279
|
526,601
|
|
|
|
|
Commitments
and Contingencies
|
|
|
|
Equity:
|
|
|
|
Common
shares
|
201
|
201
|
28
|
Additional
paid-in capital
|
2,987,363
|
3,024,054
|
425,989
|
Retained
earnings
|
1,311,194
|
1,114,853
|
157,046
|
Other
comprehensive income
|
67,101
|
79,216
|
11,159
|
Total X
Financial shareholders' equity
|
4,365,859
|
4,218,324
|
594,222
|
Non-controlling
interests
|
1,246
|
1,246
|
176
|
TOTAL
EQUITY
|
4,367,105
|
4,219,570
|
594,398
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
8,280,632
|
7,957,849
|
1,120,999
|
X
Financial
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
(In thousands,
except for share and per share data)
|
2019
|
2020
|
|
2020
|
|
RMB
|
RMB
|
|
USD
|
Net
revenues
|
|
|
|
|
Loan
facilitation service-Direct Model
|
626,382
|
245,960
|
|
34,648
|
Loan
facilitation service-Intermediary Model
|
35,162
|
37,012
|
|
5,214
|
Post-origination service
|
73,007
|
64,113
|
|
9,031
|
Financing
income
|
17,801
|
174,617
|
|
24,598
|
Other
revenue
|
24,066
|
7,290
|
|
1,027
|
Total net
revenue
|
776,418
|
528,992
|
|
74,518
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
Origination and
servicing
|
336,539
|
424,875
|
|
59,851
|
General and
administrative
|
56,268
|
69,929
|
|
9,851
|
Sales and
marketing
|
30,685
|
11,813
|
|
1,664
|
Provision for
contingent guarantee liabilities
|
-
|
17,876
|
|
2,518
|
Provision for
accounts receivable and contract assets
|
66,404
|
82,116
|
|
11,567
|
Provision for
loans receivable
|
7,460
|
42,831
|
|
6,033
|
Credit losses
for other financial assets
|
-
|
9,597
|
|
1,352
|
Total
operating costs and expenses
|
497,356
|
659,037
|
|
92,836
|
|
|
|
|
|
Income
(loss) from operations
|
279,062
|
(130,045)
|
|
(18,318)
|
Interest
income, net
|
763
|
6,453
|
|
909
|
Foreign
exchange gain (loss)
|
(873)
|
(84)
|
|
(12)
|
Change in fair
value of financial guarantee derivative
|
(52,991)
|
(77,522)
|
|
(10,920)
|
Fair value
adjustments related to Consolidated Trusts
|
32,556
|
(32,352)
|
|
(4,557)
|
Other income
(loss), net
|
456
|
5,236
|
|
738
|
|
|
|
|
|
Income
(loss) before income taxes and gain from
equity in affiliates
|
258,973
|
(228,314)
|
|
(32,160)
|
|
|
|
|
|
Income tax benefit
(expense)
|
(53,605)
|
31,153
|
|
4,388
|
Gain from
equity in affiliates
|
3,796
|
820
|
|
116
|
Net income
(loss)
|
209,164
|
(196,341)
|
|
(27,656)
|
Less: net
income (loss) attributable to non-controlling
interests
|
200
|
-
|
|
-
|
Net income
(loss) attributable to X Financial
shareholders
|
208,964
|
(196,341)
|
|
(27,656)
|
|
|
|
|
|
Net income
(loss)
|
209,164
|
(196,341)
|
|
(27,656)
|
Other
comprehensive income, net of tax of nil:
|
|
|
|
|
Foreign currency
translation adjustments
|
(18,883)
|
12,115
|
|
1,707
|
Comprehensive
income (loss)
|
190,281
|
(184,226)
|
|
(25,949)
|
Less: comprehensive
income (loss) attributable to non
controlling interests
|
200
|
-
|
|
-
|
Comprehensive
income (loss) attributable to X
Financial shareholders
|
190,081
|
(184,226)
|
|
(25,949)
|
|
|
|
|
|
Net income per
share—basic
|
0.68
|
(0.61)
|
|
(0.09)
|
Net income per
share—diluted
|
0.65
|
(0.61)
|
|
(0.09)
|
|
|
|
|
|
Net income per
ADS—basic
|
1.36
|
(1.22)
|
|
(0.17)
|
Net income per
ADS—diluted
|
1.30
|
(1.22)
|
|
(0.17)
|
|
|
|
|
|
Weighted
average number of ordinary shares
outstanding—basic
|
306,025,409
|
320,667,943
|
|
320,667,943
|
Weighted
average number of ordinary shares
outstanding—diluted
|
322,662,503
|
326,872,712
|
|
326,872,712
|
X
Financial
|
Unaudited
Reconciliations of GAAP and Non-GAAP Results
|
|
|
|
Three Months Ended
March 31,
|
(In thousands,
except for share and per share data)
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
GAAP net income
(loss)
|
209,164
|
(196,341)
|
(27,656)
|
Add: Share-based
compensation expenses (net of tax of nil)
|
42,199
|
36,402
|
5,128
|
Non-GAAP adjusted
net income (loss)
|
251,363
|
(159,939)
|
(22,528)
|
|
|
|
|
Net income (loss)
attributable to X Financial shareholders
|
208,964
|
(196,341)
|
(27,656)
|
Add: Share-based
compensation expenses (net of tax of nil)
|
42,199
|
36,402
|
5,128
|
Non-GAAP adjusted
net income (loss) attributable to X
Financial shareholders
|
251,163
|
(159,939)
|
(22,528)
|
|
|
|
|
Non-GAAP
adjusted net income (loss) per share—basic
|
0.82
|
(0.50)
|
(0.07)
|
Non-GAAP
adjusted net income (loss) per share—diluted
|
0.78
|
(0.50)
|
(0.07)
|
|
|
|
|
Non-GAAP
adjusted net income (loss) per ADS—basic
|
1.64
|
(1.00)
|
(0.14)
|
Non-GAAP
adjusted net income (loss) per ADS—diluted
|
1.56
|
(1.00)
|
(0.14)
|
|
|
|
|
Weighted
average number of ordinary shares
outstanding—basic
|
306,025,409
|
320,667,943
|
320,667,943
|
Weighted
average number of ordinary shares
outstanding—diluted
|
322,662,503
|
326,872,712
|
326,872,712
|
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content:http://www.prnewswire.com/news-releases/x-financial-reports-first-quarter-2020-unaudited-financial-results-301084996.html
SOURCE X Financial