SHENZHEN, China, Aug. 18, 2019 /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 second
quarter ended June 30, 2019.
Second Quarter 2019 Financial Highlights
- Net income attributable to X Financial shareholders in the
second quarter of 2019 increased by 0.8% to RMB303.6 million (US$44.2
million) from RMB301.1 million
in the same period of 2018.
- Non-GAAP1 net income attributable to X Financial
shareholders in the second quarter of 2019 decreased by 0.01% to
RMB342.5 million (US$49.9 million) from RMB342.6 million in the same period of 2018.
- Net revenues in the second quarter of 2019 decreased by 23.6%
to RMB809.6 million (US$117.9 million) from RMB1,059.6 million in the same period of
2018.
- Income from operation in the second quarter of 2019 decreased
by 43.3% to RMB262.8 million
(US$38.3 million) from RMB463.1 million in the same period of 2018.
- Net income per basic and diluted American depositary share
("ADS") 2 in the second quarter of 2019 were
RMB1.94 (US$0.28) and RMB1.86 (US$0.27)
respectively, compared with RMB2.14
and RMB1.98, respectively, in the
same period of 2018.
- Non-GAAP net income per basic and diluted ADS in the second
quarter of 2019 were RMB2.18
(US$0.32) and RMB2.10 (US$0.31),
respectively, compared with RMB2.44
and RMB2.26, respectively, in the
same period of 2018.
Second Quarter 2019 Operational Highlights
- Total loan facilitation amount3 in the second
quarter of 2019 was RMB10,172
million, representing a decrease of 9.1% from RMB11,186 million in the same period of 2018 and
an increase of 5.6% from RMB9,629
million in the first quarter of 2019.
- The loan facilitation of Xiaoying
Credit Loan4 in the second quarter of 2019 was
RMB7,619 million, representing a
decrease of 23.2% from RMB9,925
million in the same period of 2018 and a decrease of 3.9%
from RMB7,932 million in the first
quarter of 2019. Xiaoying Credit
Loan accounted for 74.9% of the Company's total loan
facilitation amount, compared with 88.7% in the same period of
2018.
- Total outstanding loan balance5 as of June 30, 2019 was RMB19,821 million, compared with RMB22,270 million as of June 30, 2018 and RMB20,187 million as of March 31, 2019.
- Total number of loans facilitated6 in the second
quarter of 2019 was 3,593,383, representing an increase of 254.5%
from 1,013,774 in the same period of 2018 and an increase of 144.7%
from 1,468,270 for the first quarter of 2019.
- Average loan amount per transaction7 in the second
quarter of 2019 was RMB2,831,
representing a decrease of 74.3% from RMB11,035 in the same period of 2018 and a
decrease of 56.8% from RMB6,558 for
the first quarter of 2019.
- The delinquency rates for all outstanding loans that are past
due for 31-90 days and 91–180 days as of June 30, 2019 were 3.10% and 4.99%, respectively,
compared with 3.56% and 5.21%, respectively, as of March 31, 2019, and 1.98% and 3.26%,
respectively, as of June 30,
2018.
- Number of active borrowers in the second quarter of 2019 was
795,032, representing a decrease of 2.0% from 811,267 in the same
period of 2018 and an increase of 6.7% from 745,056 in the first
quarter of 2019.
- The amount of cumulative borrowers each of whom made at least
one transaction on the Company's lending platform as of
June 30, 2019 was 5,031,589.
- Total cumulative registered users reached 30,110,387 as of
June 30, 2019.
- Number of active individual investors[8] in the second quarter
of 2019 was 79,218, representing a decrease of 44.0% from 141,371
in the same period of 2018 and a decrease of 18.1% from 96,686 in
the first quarter of 2019.
- The cumulative number of active individual investors as of
June 30, 2019 was 489,880, compared
with 380,907 as of June 30, 2018, and
477,489 as of March 31, 2019.
Mr. Justin Tang, the Founder,
Chief Executive Officer and Chairman of the Company, commented, "We
are pleased to report a solid quarter where we made significant
progress across a number of different aspects. Our business
development momentum remains strong with the quality of loans
facilitated on our platform improving and financing from
institutional investors expanding. I'd like to highlight some of
these achievements."
"First, the industry regulatory environment remains challenging
during the second quarter of this year. No matter what the
regulation trends are, we are making ourselves thoroughly prepared
to be qualified and compliant with new regulations in order to
protect investors and shareholders' benefits."
"Second, the high-quality loans on our platform and our strong
reputation in the industry is helping us to attract more
institutional investors. During the second quarter of 2019, funding
from non-individual investors (mainly from financial institutions)
accounts for around 26.7% of the loans facilitated through our
platform, a significant improvement from 10.4% in the first quarter
of 2019. Demand from institutional investors for our high-quality
assets remains strong and will gradually reduce our funding costs
over time. Financial institutions have extended credit lines to us
in an amount of approximately RMB26.4
billion for us to facilitate loan transactions on our
platform which reflects the trust that financial institutions have
in the quality of our assets and the strength of our risk
management systems."
"Third, our delinquency rate improved on a sequential basis as
we continue to invest in our risk management systems and the
technology. With the macro economic environment softening, we are
diversifying our customer acquisition channels through partnerships
with e-commerce platforms and financial product marketplaces."
"Lastly, Xiaoying Wallet, our
recently launched revolving credit product, grew rapidly during
this quarter with transaction volumes jumping significantly to
RMB971 million from RMB200 million in the last quarter and
outstanding loan balance increasing to RMB578 million as of June
30, 2019 from RMB177 million
as of March 31, 2019. Xiaoying Wallet was developed with the needs of
our customers in mind and we leveraged our sophisticated big data
analysis capabilities and advanced technological infrastructure to
offer the best product."
"In conclusion, we are confident in our future growth prospects
and ability to create long-term value for our investors and
shareholders, we will continue to provide the best user-friendly
and convenient financial services to borrowers, and help them to
meet demand for consumption, and grow their small and micro-loan
business."
Mr. Simon Cheng, President of the
Company, added, "We are pleased to see the quality of the loans
facilitated on our platform improve and delinquency rates for both
30-90 days and 90-180 days go down sequentially which reflects our
strong risk management capabilities and efforts in continued
investment in risk control infrastructure."
"Besides, we are expanding investor acquisition channels,
including banks, trust companies and other financial institutions
to strengthen our funding cost advantage and diversify funding
sources. Additionally, we are expanding our borrower acquisition
channels by cooperating with more platforms to enlarge our customer
base and accelerate business growth."
"We are happy to see Xiaoying
Wallet is growing in importance as a result of strong demand
in the market. The number of transactions of Xiaoying Wallet in the second quarter of 2019
was 2.9 million, increased from around 640,000 in the first quarter
of 2019, representing an increase of 347.2% quarter over quarter;
The number of registered and approved users of Xiaoying Wallet was 542,752 as of June 30, 2019, increasing from 192,891 as of
March 31, 2019; The number of active
users of Xiaoying Wallet was 221,320
as of June 30, 2019, increasing from
81,975 as of March 31, 2019.
Xiaoying Wallet is expected to
maintain strong growth momentum and gradually account for a larger
percentage of our overall business's revenue."
Mr. Kevin Zhang, Chief Financial
Officer of the Company, commented, "We delivered solid financial
results during 2019 second quarter despite the regulatory
uncertainties remain. Non-GAAP net income attributable to X
Financial shareholders increased slightly to RMB342.5 million during this quarter."
"We continued to expand our relationships with banks and trust
companies as well as institutional funding partners during this
quarter. Funding costs remained stable as we continue to attract
low-cost funding with the high-quality loans on our platform."
"We are pleased to see one of our major subsidiaries classified as a software enterprise in May 2019
which makes it tax exempt of Enterprise Income Tax of 2018 and subject to a preferential EIT
rate of 12.5% from 2019 to 2021. This contributed significantly to the income tax benefit of RMB113.7
million during the quarter."
"In conclusion, we are pleased with our operational and
financial performance this quarter and will continue to roll out
initiatives and apply technology across our business to improve
operational efficiency and create long-term sustainable value for
our shareholders."
Second Quarter 2019 Financial Results
Net revenues in the second quarter of 2019 decreased by
23.6% to RMB809.6 million
(US$117.9 million) from RMB1,059.6 million in the same period of 2018,
primarily due to a decrease in transaction volumes of Xiaoying Credit Loan in this quarter compared
with the same period of 2018.
Loan facilitation service fees under the direct model in
the second quarter of 2019 decreased by 46.0% to RMB474.1 million (US$69.1
million) from RMB878.6 million
in the same period of 2018, primarily due to a decrease in
transaction volumes of Xiaoying Credit
Loan and a shift in strategy to attract more institutional
investors through the intermediary model
Loan facilitation service fees under the intermediary
model in the second quarter of 2019 increased by 64.7% to
RMB157.5 million (US$22.9 million) from RMB95.6 million in the same period of 2018,
primarily due to an increase in the total volume of products
offered under the intermediary model as the Company shifted its
strategy to attract more institutional investors.
Post-origination service fees in the second
quarter of 2019 increased by 294.0% to RMB96.6 million (US$14.1
million) from RMB24.5 million
in the same period of 2018, primarily due to a significant increase
in transaction volumes of Xiaoying Credit Loan over the
last twelve months for loans with a weighted average contractual
terms of 10~12 months. 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 2019
increased by 135.3% to RMB55.8
million (US$8.1 million) from
RMB23.7 million in the same period of
2018, primarily due to the newly established trusts this year.
Other revenue in the second quarter of 2019 decreased by
31.1% to RMB25.6 million
(US$3.7 million) from RMB37.1 million in the same period of 2018,
primarily due to a decrease in guarantee revenue associated with
loans facilitated under the Old ZhongAn model9, which
are no longer offered to our customers from September 15, 2017.
Origination and servicing expenses in the second quarter
of 2019 increased by 47.6% to RMB421.7
million (US$61.4 million) from
RMB285.6 million in the same period
of 2018, primarily due to an increase in collection expenses for
the cumulative effect of the growing business and customer
acquisition costs for the recently launched revolving credit
product, Xiaoying Wallet.
General and administrative expenses in the second quarter
of 2019 increased by 28.9% to RMB55.6
million (US$8.1 million) from
RMB43.1 million in the same period of
2018, primarily due to an increase in share-based compensation
expenses for the options granted on or after IPO and
administrative expenses related to the newly established
trusts.
Sales and marketing expenses in the second quarter of
2019 decreased by 53.4% to RMB26.8
million (US$3.9 million) from
RMB57.5 million in the same period of
2018, primarily due to a reduction in promotional and advertising
expenses.
Provision for contingent guarantee liabilities in
the second quarter of 2019 was nil, compared with RMB83.6 million in the same period of 2018,
primarily because there have been no deteriorations in estimated
default rates of the loans subject to guarantee liabilities
facilitated in prior periods.
Provision for accounts receivable and contract
assets in the second quarter of 2019 decreased by 63.0% to
RMB40.1 million (US$5.8 million) from RMB108.5 million in the same period of 2018,
primarily due to the decrease in revenue this quarter compared with
same period of 2018 and a change in estimated default rates.
Income from operation in the second quarter of 2019
decreased by 43.3% to RMB262.8
million (US$38.3 million)
from RMB463.1 million in the same period of 2018.
Income before income taxes and gain from equity in
affiliates in the second quarter of 2019 was RMB186.6 million (US$27.2
million), compared with RMB412.1
million in the same period of 2018.
Income tax benefit in the second quarter of 2019 was
RMB113.7 million (US$16.6 million) compared with an income tax
expense of RMB114.3 million in the
same period of 2018, primarily due to the facts that (i) two major
subsidiaries of the Company became qualified enterprises in the
second half of 2018 to enjoy the preferential income tax rate of
15% from 2018 to 2020, and (ii) one major subsidiary of the Company
was certified as software enterprise in early May 2019 to enjoy the preferential income tax
rate of 12.5% from 2019 to 2021 and full tax exemption for the tax
year ending on December 31,2018
recorded this quarter.
Net income attributable to X Financial
shareholders in the second quarter of 2019 was
RMB303.6 million (US$44.2 million), compared with RMB301.1 million in the same period of 2018.
Non-GAAP net income attributable to X Financial
shareholders in the second quarter of 2019 was RMB342.5 million (US$49.9
million), compared with RMB342.6
million in the same period of 2018.
Net income per basic and diluted ADS in the second
quarter of 2019 were RMB1.94
(US$0.28) and RMB1.86 (US$0.27),
respectively, compared with RMB2.14
and RMB1.98, respectively, in the
same period of 2018.
Non-GAAP net income per basic and diluted ADS in the
second quarter of 2019 were RMB2.18
(US$0.32) and RMB2.10 (US$0.31),
respectively, compared with RMB2.44
and RMB2.26, respectively, in the
same period of 2018.
Cash and cash equivalents was RMB931.0 million (US$135.6
million) as of June 30, 2019,
compared with RMB1,555.4 million as
of March 31, 2019.
Business Outlook
X Financial currently expects the total loan facilitation for
the third quarter of 2019 to be approximately RMB10,500 million. 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 8:00 AM U.S. Eastern Time on
Monday, August 19, 2019 (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
|
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 August 26,
2019:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10133980
|
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: (1) net income, (2) net income attributable to X
Financial shareholders, (3) net income per basic ADS, and (4) 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
On February 25, 2016, the FASB
issued Accounting Standard Update ("ASU") No. 2016-02, Leases,
which requires lessees to record lease liabilities and right-of-use
assets as of the date of adoption and was incorporated into
GAAP as Accounting Standards Codification ("ASC") Topic
842. The Company adopted the new standard
prospectively effective January 1,
2019, using a modified retrospective basis method under
which prior comparative periods are not restated. As of
January 1, 2019, the Company had some
operating leases for its offices with the
remaining contractual terms of 16~46 months. Under
the terms of the lease, the Company will pay base annual rent
(subject to an annual fixed percentage increase), plus fixed
property management fees. The ROU assets were recorded as "Other
non-current assets", and the current and non-current portions of
the lease liabilities were recorded as "Accrued expenses and other
current liabilities" and "Other non-current liabilities" in the
Condensed Consolidated Balance Sheets. There was no cumulative
adjustment to our retained earnings.
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 RMB6.8650 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 28,
2019.
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
Ms. Jennifer 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
1 The Company uses in this press release the
following non-GAAP financial measures: (1) net income, (2) net
income attributable to X Financial shareholders, (3) net income per
basic ADS, and (4) 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 Represents the total number of transactions of loan
facilitation during the relevant period.
7 Calculated by dividing the total loan facilitation
amount by the number of loans facilitated during the relevant
period.
8 Refers to individual investors who made at least one
transaction during that period on our platform.
9 Refers to the arrangement with ZhongAn prior to
September 2017, under which ZhongAn
initially reimbursed the loan principal and interest to the
investor upon the borrower's default, where we at our own
discretion compensated ZhongAn for substantially all the loan
principal and interest default but have not been subsequently
collected.
X
Financial
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
(In thousands,
except for share and per share data)
|
As of December 31,
2018
|
|
As of June 30,
2019
|
|
RMB
|
|
RMB
|
USD
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
1,069,361
|
|
931,001
|
135,616
|
Restricted
cash
|
208,346
|
|
677,089
|
98,629
|
Accounts
receivable and contract assets, net of allowance for doubtful
accounts
|
1,379,293
|
|
1,183,500
|
172,396
|
Loans held for
sale
|
632,717
|
|
428,625
|
62,436
|
Loans at fair
value
|
33,417
|
|
1,289,463
|
187,831
|
Prepaid
expenses and other current assets
|
115,193
|
|
650,210
|
94,715
|
Financial
guarantee derivative
|
358,250
|
|
774,180
|
112,772
|
Amounts due
from related party
|
20,000
|
|
-
|
-
|
Deferred tax
assets, net
|
346,648
|
|
346,648
|
50,495
|
Long term
investments
|
287,223
|
|
281,730
|
41,039
|
Property and
equipment, net
|
23,215
|
|
21,688
|
3,159
|
Intangible
assets, net
|
28,400
|
|
32,324
|
4,709
|
Loan receivable
from Xiaoying Housing Loans, net
|
128,101
|
|
132,137
|
19,248
|
Other
non-current assets
|
6,806
|
|
60,968
|
8,881
|
TOTAL
ASSETS
|
4,636,970
|
|
6,809,563
|
991,926
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Payable to
investors at fair value of the Consolidated Trusts
|
-
|
|
1,460,640
|
212,766
|
Guarantee
liabilities
|
20,898
|
|
15,991
|
2,329
|
Short-term
borrowings
|
198,000
|
|
400,010
|
58,268
|
Accrued payroll
and welfare
|
93,464
|
|
65,979
|
9,611
|
Other tax
payable
|
134,129
|
|
83,086
|
12,103
|
Income tax
payable
|
312,238
|
|
264,175
|
38,481
|
Deposit payable
to channel cooperators
|
134,042
|
|
178,112
|
25,945
|
Accrued
expenses and other current liabilities
|
178,701
|
|
235,203
|
34,262
|
Deferred tax
liabilities
|
47,428
|
|
47,428
|
6,909
|
Other
non-current liabilities
|
-
|
|
38,993
|
5,680
|
TOTAL
LIABILITIES
|
1,118,900
|
|
2,789,617
|
406,354
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Common shares (US$0.0001 par value; 1,000,000,000 shares authorized,
303,614,298 and
313,614,297 shares issued and outstanding as of December 31, 2018 and June 30, 2019
respectively)
|
190
|
|
196
|
29
|
Additional
paid-in capital
|
2,824,223
|
|
2,909,198
|
423,772
|
Retained
earnings
|
640,115
|
|
1,054,100
|
153,547
|
Other
comprehensive income
|
52,495
|
|
55,205
|
8,042
|
Total X
Financial shareholders' equity
|
3,517,023
|
|
4,018,699
|
585,390
|
Non-controlling
interests
|
1,047
|
|
1,247
|
182
|
TOTAL
EQUITY
|
3,518,070
|
|
4,019,946
|
585,572
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
4,636,970
|
|
6,809,563
|
991,926
|
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)
|
2018
|
2019
|
2019
|
|
2018
|
2019
|
2019
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
Net
revenues
|
|
|
|
|
|
|
|
Loan
facilitation service-Direct Model
|
878,628
|
474,120
|
69,063
|
|
1,518,078
|
1,100,502
|
160,306
|
Loan
facilitation service- Intermediary Model
|
95,599
|
157,465
|
22,937
|
|
168,900
|
192,627
|
28,059
|
Post
origination service
|
24,530
|
96,636
|
14,077
|
|
38,893
|
169,643
|
24,711
|
Financing
income
|
23,696
|
55,760
|
8,122
|
|
49,808
|
73,561
|
10,715
|
Other
revenue
|
37,139
|
25,605
|
3,730
|
|
72,602
|
49,670
|
7,235
|
Total net
revenue
|
1,059,592
|
809,586
|
117,929
|
|
1,848,281
|
1,586,003
|
231,026
|
|
|
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
Origination and
servicing
|
285,597
|
421,656
|
61,421
|
|
573,885
|
758,195
|
110,444
|
General and
administrative
|
43,087
|
55,558
|
8,093
|
|
82,813
|
111,826
|
16,289
|
Sales and
marketing
|
57,455
|
26,760
|
3,898
|
|
107,939
|
57,445
|
8,368
|
Provision for
contingent guarantee liabilities
|
83,553
|
-
|
-
|
|
182,736
|
-
|
-
|
Provision for
accounts receivable and contract assets
|
108,474
|
40,141
|
5,847
|
|
169,695
|
106,545
|
15,520
|
Provision for
loan receivable from Xiaoying Housing
Loans
|
18,318
|
2,688
|
392
|
|
18,318
|
10,148
|
1,478
|
Total
operating costs and expenses
|
596,484
|
546,803
|
79,651
|
|
1,135,386
|
1,044,159
|
152,099
|
|
|
|
|
|
|
|
|
Income from
operation
|
463,108
|
262,783
|
38,278
|
|
712,895
|
541,845
|
78,927
|
Interest
income
|
1,348
|
4,644
|
676
|
|
3,925
|
5,406
|
787
|
Foreign
exchange gain (loss)
|
(1)
|
22
|
3
|
|
(9)
|
(851)
|
(124)
|
Investment
loss
|
-
|
(12,538)
|
(1,826)
|
|
-
|
(12,538)
|
(1,826)
|
Change in fair
value of financial guarantee derivative
|
(55,135)
|
(61,271)
|
(8,925)
|
|
(101,249)
|
(114,262)
|
(16,644)
|
Fair value
adjustments related to Consolidated Trusts
|
6,110
|
14,759
|
2,150
|
|
6,799
|
47,767
|
6,958
|
Fair value
adjustments related to loans held for sale
|
-
|
(23,063)
|
(3,360)
|
|
-
|
(30,319)
|
(4,416)
|
Other income
(loss), net
|
(3,294)
|
1,272
|
185
|
|
(3,288)
|
8,986
|
1,309
|
|
|
|
|
|
|
|
|
Income
before income taxes and gain from equity in
affiliates
|
412,136
|
186,608
|
27,181
|
|
619,073
|
446,034
|
64,971
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
114,313
|
(113,724)
|
(16,566)
|
|
179,197
|
(64,303)
|
(9,367)
|
Gain from
equity in affiliates
|
3,239
|
3,249
|
473
|
|
3,379
|
7,045
|
1,026
|
Net
income
|
301,062
|
303,581
|
44,220
|
|
443,255
|
517,382
|
75,364
|
Less: net
income (loss) attributable to non-controlling
interests
|
(6)
|
-
|
-
|
|
(50)
|
200
|
29
|
Net income
attributable to X Financial shareholders
|
301,068
|
303,581
|
44,220
|
|
443,305
|
517,182
|
75,335
|
|
|
|
|
|
|
|
|
Net
income
|
301,062
|
303,581
|
44,220
|
|
443,255
|
517,382
|
75,364
|
Other
comprehensive income, net of tax of nil:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
19,579
|
21,614
|
3,148
|
|
4,872
|
2,731
|
398
|
Comprehensive
income
|
320,641
|
325,195
|
47,368
|
|
448,127
|
520,113
|
75,762
|
Less: comprehensive
income (loss) attributable to non controlling interests
|
(6)
|
-
|
-
|
|
(50)
|
200
|
29
|
Comprehensive
income attributable to X Financial shareholders
|
320,647
|
325,195
|
47,368
|
|
448,177
|
519,913
|
75,733
|
|
|
|
|
|
|
|
|
Net income per
ADS—basic
|
2.14
|
1.94
|
0.28
|
|
3.16
|
3.34
|
0.49
|
Net income per
ADS—diluted
|
1.98
|
1.86
|
0.27
|
|
2.92
|
3.22
|
0.47
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares
outstanding—basic
|
280,087,342
|
312,856,055
|
312,856,055
|
|
280,087,342
|
309,459,601
|
309,459,601
|
Weighted
average number of ordinary shares
outstanding—diluted
|
304,381,423
|
325,115,232
|
325,115,232
|
|
304,381,423
|
321,718,778
|
321,718,778
|
X
Financial
|
|
|
|
|
|
|
|
Unaudited
Reconciliations of GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
March 31,
|
(In thousands,
except for share and per share data)
|
2018
|
2019
|
2019
|
|
2018
|
2019
|
2019
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
GAAP net
income
|
301,062
|
303,581
|
44,220
|
|
443,255
|
517,382
|
75,364
|
Add: Share-based
compensation expenses (net of tax of nil)
|
41,509
|
38,954
|
5,674
|
|
82,721
|
81,153
|
11,821
|
Non-GAAP net
income
|
342,571
|
342,535
|
49,894
|
|
525,976
|
598,535
|
87,185
|
|
|
|
|
|
|
|
|
Net income
attributable to X Financial shareholders
|
301,068
|
303,581
|
44,220
|
|
443,305
|
517,182
|
75,335
|
Add: Share-based
compensation expenses (net of tax of nil)
|
41,509
|
38,954
|
5,674
|
|
82,721
|
81,153
|
11,821
|
Non-GAAP net
income attributable to X Financial shareholders
|
342,577
|
342,535
|
49,894
|
|
526,026
|
598,335
|
87,156
|
|
|
|
|
|
|
|
|
Non-GAAP net
income per ADS—basic
|
2.44
|
2.18
|
0.32
|
|
3.76
|
3.86
|
0.56
|
Non-GAAP net
income per ADS—diluted
|
2.26
|
2.10
|
0.31
|
|
3.46
|
3.72
|
0.54
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares
outstanding—basic
|
280,087,342
|
312,856,055
|
312,856,055
|
|
280,087,342
|
309,459,601
|
309,459,601
|
Weighted
average number of ordinary shares
outstanding—diluted
|
304,381,423
|
325,115,232
|
325,115,232
|
|
304,381,423
|
321,718,778
|
321,718,778
|
View original
content:http://www.prnewswire.com/news-releases/x-financial-reports-second-quarter-2019-unaudited-financial-results-300903277.html
SOURCE X Financial