SHENZHEN, China, Aug. 20, 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 second quarter
ended June 30, 2020.
Second Quarter 2020 Financial Highlights
- Total net revenue decreased by 51.0% to RMB387.9 million (US$54.9
million) from RMB792.3 million
in the same period of 2019.
- Loss from operations was RMB341.5
million (US$48.3 million),
compared with income from operations of RMB223.9 million in the same period of 2019.
- Net loss attributable to X Financial shareholders was
RMB343.7 million (US$48.6 million), compared with net income
attributable to X Financial shareholders of RMB316.1 million in the same period of 2019.
- Non-GAAP[1] adjusted net loss attributable to X
Financial shareholders was RMB325.9
million (US$46.1 million),
compared with non-GAAP adjusted net income attributable to X
Financial shareholders of RMB355.0
million in the same period of 2019.
- Net loss per basic and diluted American depositary share
("ADS")[2] were both RMB2.14 (US$0.30),
compared with net income per basic and diluted American depositary
share ("ADS") of RMB2.02 and
RMB1.94, respectively, in the same
period of 2019.
- Non-GAAP adjusted net loss per basic and adjusted diluted ADS
were both RMB2.04 (US$0.29), compared with non-GAAP adjusted net
income per basic and adjusted diluted ADS of RMB2.26 and RMB2.18, respectively, in the same period of
2019.
Second Quarter 2020 Operational Highlights
- The total loan facilitation amount[3] was
RMB6,153 million, representing a
decrease of 39.5% from RMB10,172
million in the same period of 2019 and a decrease of 9.8%
from RMB6,823 million in the first
quarter of 2020.
- The loan facilitation amount of Xiaoying Credit Loan[4] was
RMB4,583 million, representing a
decrease of 39.9% from RMB7,619
million in the same period of 2019 and a decrease of 1.0%
from RMB4,631 million in the first
quarter of 2020. Xiaoying Credit
Loan accounted for 74.5% of the Company's total loan
facilitation amount, compared with 74.9% in the same period of
2019.
- The total outstanding loan balance[5] as of
June 30, 2020 was RMB12,185 million, compared with RMB19,821 million as of June 30, 2019 and RMB14,370 million as of March 31, 2020.
- The average loan amount per transaction[6] of
Xiaoying Term Loan[7] was RMB8,356, representing a decrease of 35.0% from
RMB12,865 in the same period of 2019
and a decrease of 46.9% from RMB15,745 for the first quarter of 2020.
- The average consumption amount per user[8] of
Xiaoying Revolving Loan[9] was RMB7,265, representing a decrease of 15.3% from
RMB8,582 for the first quarter of
2020.
- The delinquency rates for all outstanding loans that are past
due for 31-90 days and 91–180 days as of June 30, 2020 were 3.53% and 9.44%, respectively,
compared with 6.71% and 7.12%, respectively, as of March 31, 2020, and 3.10% and 4.99%,
respectively, as of June 30,
2019.
- The number of cumulative borrowers, each of whom made at least
one transaction on the Company's lending platform, as of
June 30, 2020 was 6,023,233.
- Total cumulative registered users reached 47.1 million as of
June 30, 2020.
- Institutional funding accounted for 97.4% of the total loan
facilitation amount, compared with 81.7% in the first quarter of
2020.
- The Gross Merchandise Value ("GMV")[10] of Xiaoying
Online Mall[11] was RMB22.2
million, representing a decrease of 63.4% from RMB60.8 million in the first quarter of
2020.
Mr. Justin Tang, the Founder,
Chief Executive Officer and Chairman of the Company, commented, "We
continued to face great challenges due to COVID-19's impact on all
social and economic sectors. However, we have shown and
strengthened strong signs of gradual recovery in the market and
made timely and strategic decisions that will help the business
deal with these uncertainties and the adverse impact on the economy
and market environment. As a result, we believe we are well
positioned to capture potential market opportunities ahead under
the accelerated industry consolidation due to COVID-19."
"During the second quarter, our number of active borrowers
reached 625,707, representing an increase of 46.1% from 428,366 in
the previous quarter, mainly due to an increase in the number of
active borrowers of Xiaoying Credit
Loan. In addition, the credit quality of our borrower base
improved greatly during the quarter in part due to our
comprehensive risk management capabilities and stringent assessment
criteria for borrowers. Our total loan facilitation amount in July
has recovered to the level in January
2020 before COVID-19, and so were the delinquency rates for
outstanding loans."
"We continued to operate seamlessly in full compliance with
related laws and regulations, and are progressively executing our
smooth transition from a pure financial services provider to a more
comprehensive business service provider. We believe it is crucial
to follow an even more disciplined approach during this adjustment
period to generate stronger results when the market recovers and
for the sustainability of the business. Starting from the beginning
of the second quarter, we actively expanded institutional funding
and achieved 100% institutional funding for the new loans
facilitated through our platform by the end of the quarter. Despite
the impact from COVID-19, our risk management capabilities continue
to be well recognized by our institutional partners, and as of
June 30, 2020, the total credit lines
provided by our institutional partners expanded to RMB62.1 billion from RMB58.6 billion as of March 31, 2020. Furthermore, we are applying for
a small loan license to provide more convenient financial services
for our customers. We have made encouraging progress on this front
and we are expecting to get the license by the end of this year.
This initiative will further expand our product offerings to meet
the demands of underserved consumers and SMEs in China."
"In conclusion, as China's
economy continues to rebound thanks to the government's recent
efforts to revive the economy and drive domestic consumption with
continued policy stimulus. We expect that the Chinese government
will continue to stabilize the domestic economy with a series of
supportive and long-term sustainable policies to be adopted. We are
confident of the strategic measures we have implemented to ride out
these challenging market conditions, and our ability to create
long-term value for our investors and shareholders."
Mr. Simon Cheng, President of the
Company, added, "Regulatory compliance has always been our top
priority and key competitive edge in the market. So far, our
transition to 100% institutional funding has been very smooth and
we expect to strengthen our relationship with financial partners
and keep diversifying our institutional funding sources. At
present, we have achieved 100% institutional funding for new loans
facilitated through our platform. As of June
30, 2020, the outstanding loan balance of the P2P business
was RMB1.6 billion, less than one
seventh of the total outstanding loan balance, a significant
decrease from RMB8.8 billion as of
December 31, 2019 and RMB14.9 billion as of June
30, 2019. We are always doing more to step up our efforts to
protect the interests of our investors with greater transparency
and timely information."
"In the meantime, we are continuing to expand our institutional
funding base. The number of financial partners continued to
increase during the quarter. We are also in negotiations with more
financial partners to reduce the funding costs even further.
Building our platform out to scale with our proprietary
technology-driven risk control infrastructure, we use cutting-edge
data analysis and machine learning to profile borrowers on a
variety of reliable social and behavioral data. We then use this
information to set credit limits for borrowers based on individual
risk assessment results. Our proven risk management capabilities
and data intelligence have been well received by our institutional
partners. As our business recovers with high-growth momentum, we
expect to maintain closer cooperation with our financial partners
and increase our institutional funding sources."
"We implemented more stringent risk policy and control measures
to improve margins during the quarter. The GMV of Xiaoying Online
Mall declined by 63.4% from the first quarter of 2020 to
RMB22.2 million. Transaction volumes
for our revolving loan product Yaoqianhua declined to RMB1,570 million from RMB2,192 million in the previous quarter.
However, total cumulative registered users on the platform
increased by 10.6% to 47.1 million as of June 30, 2020, demonstrating the continued value
and quality of the loan products that we offer borrowers and
consumers, even during such challenging market conditions."
"In conclusion, we will continue to closely monitor market
conditions and ensure we are well positioned to capture the
potential market opportunities ahead and foster the development of
the business in a healthy and stable manner. We remain confident of
the gradual recovery taking place all over China, which will signal a rebound of the
economy from the COVID-19 epidemic. Most importantly, we have ample
funding sources to capture the enormous growth opportunities in
China's personal finance industry,
and thrive when the market revives."
Mr. Kevin Zhang, Chief Financial
Officer of the Company, added, "Although the last quarter was
challenging, we continued to make progress on the execution of our
business transition strategy. We did see an increase in the number
of our active borrowers by 46.1% on a sequential basis and total
cumulative registered users reached 47.1 million as of June 30, 2020. Institutional funding accounted
for 97.4% of the total loan facilitation amount, compared with
81.7% in the first quarter of 2020. During the second quarter, the
percentage of loan products we facilitated that were covered by
ZhongAn Insurance decreased further to 54.2% as we continued to
reduce our insurance coverage rate to lower customer borrowing
costs and enhance credit quality."
"In the early onset of the third quarter, our business was
already on track for a steady recovery. In July, our total loan
facilitation amount was back to the level in January 2020 before COVID-19, and so were the
delinquency rates for outstanding loans. The delinquency rates for
all outstanding loans that are past due for 31-90 days as of
June 30, 2020 was 3.53%, compared
with 6.71% as of March 31, 2020. We
expect this improvement trend to continue in the upcoming quarters.
In the meantime, we continue to take a disciplined and prudent
approach on cost control and will conform our business operation
towards a healthier margin profile. In light of the accelerated
combination of efforts to improve our top-line and reduce
operational expenses, we expect to resume the profit during the
second half of 2020."
"We will continue to prioritize long-term value for our
shareholders by focusing on improving operational efficiency and
lowering our customer borrowing costs. In addition to improving the
quality of our underlying assets and risk control management
systems, we have largely strengthened our internal efforts to
acquire more quality borrowers for Xiaoying
Credit Loan, our core loan business, and expect to
facilitate more loans in the coming quarters."
[1] The
Company uses in this press release the following non-GAAP financial
measures: (i) adjusted net income (loss), (ii) adjusted net income
(loss) attributable to X Financial shareholders, (iii) adjusted net
income (loss) per basic ADS, and (iv) adjusted net income (loss)
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 "Unaudited 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 Xiaoying
Housing 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 loans with fixed repayment periods including
Xiaoying Credit Loan, Xiaoying Housing Loan, and 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 to 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 installment loans to our individual customers
enabling them to purchase goods online.
|
Second Quarter 2020 Financial Results
Total net revenue decreased by 51.0% to RMB387.9 million (US$54.9
million) from RMB792.3 million
in the same period of 2019, primarily due to a decrease in
transaction volumes as a result of a more stringent risk policy put
in place to address impact of COVID-19, and also partially offset
by an increase in the proportion of total 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 58.3% to RMB197.6
million (US$28.0) from
RMB474.1 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 was RMB1.2 million
(US$0.2 million), compared with
RMB135.8 million in the same period
of 2019, primarily due to a decrease in loans facilitated under the
intermediary model whose transfer qualifies for sales
accounting.
Post-origination service fees decreased by
49.4% to RMB48.8 million
(US$6.9 million) from RMB96.6 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 112.2% to RMB127.7 million (US$18.1
million) from RMB60.2 million
in the same period of 2019, primarily due to the following factors:
(i) an increase of average loan balances held by the Consolidated
Trusts due to the establishment of new trusts since the second half
of 2019, and (ii) an increase in loans facilitated through other
financial partners. These loans do not qualify for sales
accounting, and the service fees are recognized as financing income
over the life of the underlying financing using the effective
interest method.
Other revenue decreased by 51.3% to RMB12.5 million (US$1.8
million) from RMB25.6 million
in the same period of 2019, primarily due to a decrease in penalty
fees for late or early repayment and commission fees for
introducing borrowers to other platforms.
Origination and servicing expenses increased by
17.6% to RMB496.7 million
(US$70.3 million) from RMB422.3 million in the same period of 2019,
primarily due to the following factors: (i) an increase in customer
acquisition costs, and (ii) an increase in interest expense related
to loans facilitated through the Consolidated Trusts.
General and administrative expenses increased by
34.9% to RMB75.1 million
(US$10.6 million) from RMB55.7 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 43.6% to
RMB15.1 million (US$2.1 million) from RMB26.8 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
RMB3.7 million (US$0.5 million), compared with nil in the same
period of 2019, 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 decreased by 25.3% to RMB28.3 million (US$4.0
million) from RMB37.9 million
in the same period of 2019, primarily due to a combined effect of
(i) a decrease in accounts receivable and contract assets, and (ii)
a change in the estimated default rates.
Provision for loans receivable was RMB110.5 million (US$15.6
million), compared with RMB25.8
million in the same period of 2019, primarily due to an
increase in loans receivable which was in line with an increase in
the proportion of total net revenue generated by the loans
facilitated through other financial partners.
Loss from operation was RMB341.5 million (US$48.3
million), compared with income from operation
of RMB223.9 million in the same period of 2019.
Loss before income taxes and gain from equity in
affiliates was RMB387.8
million (US$54.9 million),
compared with income before income taxes and gain from equity in
affiliates of RMB205.3 million in the
same period of 2019.
Income tax benefit was RMB43.3
million (US$6.1 million),
compared with RMB107.5 million in the
same period of 2019, primarily because of a tax exemption recorded
in the second quarter of 2019.
Net loss attributable to X Financial
shareholders was RMB343.7
million (US$48.6 million),
compared with net income attributable to X Financial shareholders
of RMB316.1 million in the same
period of 2019.
Non-GAAP adjusted net loss attributable to X Financial
shareholders was RMB325.9 million
(US$46.1 million), compared with
non-GAAP adjusted net income attributable to X Financial
shareholders of RMB355.0 million in
the same period of 2019.
Net loss per basic and diluted ADS were both RMB2.14 (US$0.30),
compared with net income per basic and diluted ADS of RMB2.02 and RMB1.94, respectively, in the same period of
2019.
Non-GAAP adjusted net loss per basic and diluted
ADS were both RMB2.04
(US$0.29), compared with non-GAAP
adjusted net income per basic and diluted ADS of RMB2.26 and RMB2.18, respectively, in the same period of
2019.
Cash and cash equivalents was RMB333.5 million (US$47.2
million) as of June 30, 2020,
compared with RMB611.6 million as of
March 31, 2020.
Business Outlook
In light of the continued steady recovery in the business that
is seeing, the Company currently expects a quarter-on-quarter growth over 20% in the
total loan facilitation for the third quarter. Providing the stable
epidemic situation maintaining in China, as well as the accelerated combination
of efforts to improve the top-line and reduce operational costs and
expenses, the Company expects to be able to resume the profit
during the second half of 2020. 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
Friday, August 21, 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 August 28,
2020:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10147262
|
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 RMB7.0651 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System as of June 30,
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. Frank Fuya
Zheng
E-mail: ir@xiaoying.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: eyuan@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 June 30,
2020
|
|
RMB
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
1,005,980
|
333,493
|
|
47,203
|
Restricted
cash
|
514,323
|
1,063,012
|
|
150,460
|
Accounts
receivable and contract assets, net of
allowance for doubtful accounts
|
771,154
|
246,581
|
|
34,901
|
Loans
receivable from Xiaoying Credit Loans and
Revolving Loans, net
|
289,553
|
713,080
|
|
100,930
|
Loans at fair
value
|
2,782,333
|
1,798,739
|
|
254,595
|
Deposits to
institutional cooperators
|
518,720
|
1,846,547
|
|
261,362
|
Prepaid
expenses and other current assets
|
707,450
|
615,537
|
|
87,124
|
Financial
guarantee derivative
|
719,962
|
470,687
|
|
66,621
|
Deferred tax
assets, net
|
465,441
|
572,160
|
|
80,984
|
Long term
investments
|
292,142
|
301,450
|
|
42,667
|
Property and
equipment, net
|
20,139
|
16,463
|
|
2,330
|
Intangible
assets, net
|
35,127
|
38,222
|
|
5,410
|
Loan receivable
from Xiaoying Housing Loans, net
|
89,536
|
62,102
|
|
8,790
|
Other
non-current assets
|
68,772
|
46,134
|
|
6,530
|
TOTAL
ASSETS
|
8,280,632
|
8,124,207
|
|
1,149,907
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Payable to
investors
|
3,006,349
|
3,101,778
|
|
439,028
|
Guarantee
liabilities
|
17,475
|
21,015
|
|
2,974
|
Short-term bank
borrowings
|
-
|
341,495
|
|
48,335
|
Accrued payroll
and welfare
|
63,649
|
42,789
|
|
6,056
|
Other tax
payable
|
58,086
|
62,496
|
|
8,846
|
Income tax
payable
|
340,996
|
286,590
|
|
40,564
|
Deposit payable
to channel cooperators
|
108,923
|
31,273
|
|
4,426
|
Accrued
expenses and other liabilities
|
274,440
|
320,691
|
|
45,391
|
Other
non-current liabilities
|
42,300
|
23,467
|
|
3,322
|
Deferred tax
liabilities
|
1,309
|
584
|
|
83
|
TOTAL
LIABILITIES
|
3,913,527
|
4,232,178
|
|
599,025
|
|
|
|
|
|
Commitments
and Contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Common
shares
|
201
|
202
|
|
29
|
Additional
paid-in capital
|
2,987,363
|
3,042,034
|
|
430,572
|
Retained
earnings
|
1,311,194
|
771,188
|
|
109,155
|
Other
comprehensive income
|
67,101
|
77,310
|
|
10,943
|
Total X
Financial shareholders' equity
|
4,365,859
|
3,890,734
|
|
550,699
|
Non-controlling
interests
|
1,246
|
1,295
|
|
183
|
TOTAL
EQUITY
|
4,367,105
|
3,892,029
|
|
550,882
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
8,280,632
|
8,124,207
|
|
1,149,907
|
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)
|
2019
|
2020
|
2020
|
|
2019
|
2020
|
|
2020
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
|
USD
|
Net
revenues
|
|
|
|
|
|
|
|
|
Loan
facilitation service-Direct Model
|
474,120
|
197,626
|
27,972
|
|
1,100,502
|
443,587
|
|
62,787
|
Loan
facilitation service-Intermediary Model
|
135,788
|
1,218
|
172
|
|
170,951
|
38,231
|
|
5,411
|
Post-origination service
|
96,550
|
48,825
|
6,911
|
|
169,558
|
112,938
|
|
15,985
|
Financing
income
|
60,190
|
127,729
|
18,079
|
|
77,992
|
302,346
|
|
42,794
|
Other
revenue
|
25,605
|
12,470
|
1,765
|
|
49,670
|
19,760
|
|
2,797
|
Total net
revenue
|
792,253
|
387,868
|
54,899
|
|
1,568,673
|
916,862
|
|
129,774
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
|
Origination and
servicing
|
422,297
|
496,701
|
70,303
|
|
758,836
|
921,576
|
|
130,441
|
General and
administrative
|
55,680
|
75,089
|
10,628
|
|
111,951
|
145,021
|
|
20,526
|
Sales and
marketing
|
26,760
|
15,084
|
2,135
|
|
57,445
|
26,897
|
|
3,807
|
Provision for
contingent guarantee liabilities
|
-
|
3,714
|
526
|
|
-
|
21,590
|
|
3,056
|
Provision for
accounts receivable and
contract assets
|
37,853
|
28,259
|
4,000
|
|
104,256
|
110,375
|
|
15,623
|
Provision for
loans receivable
|
25,751
|
110,535
|
15,645
|
|
40,467
|
153,366
|
|
21,708
|
Credit losses
for other financial assets
|
-
|
-
|
-
|
|
-
|
9,597
|
|
1,358
|
Total
operating costs and expenses
|
568,341
|
729,382
|
103,237
|
|
1,072,955
|
1,388,422
|
|
196,519
|
|
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
223,912
|
(341,514)
|
(48,338)
|
|
495,718
|
(471,560)
|
|
(66,745)
|
Interest
income, net
|
4,644
|
3,784
|
536
|
|
5,406
|
10,237
|
|
1,449
|
Foreign
exchange gain (loss)
|
22
|
12
|
2
|
|
(851)
|
(72)
|
|
(10)
|
Investment
loss
|
(12,538)
|
-
|
-
|
|
(12,538)
|
-
|
|
-
|
Change in fair
value of financial guarantee
derivative
|
(61,271)
|
(39,521)
|
(5,594)
|
|
(114,262)
|
(117,042)
|
|
(16,566)
|
Fair value
adjustments related to
Consolidated Trusts
|
49,295
|
(14,309)
|
(2,025)
|
|
81,851
|
(46,660)
|
|
(6,604)
|
Other income
(loss), net
|
1,272
|
3,755
|
531
|
|
8,986
|
8,991
|
|
1,273
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes and
gain from equity in affiliates
|
205,336
|
(387,793)
|
(54,888)
|
|
464,310
|
(616,106)
|
|
(87,203)
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
107,477
|
43,334
|
6,134
|
|
53,872
|
74,487
|
|
10,543
|
Gain from
equity in affiliates
|
3,249
|
841
|
119
|
|
7,045
|
1,661
|
|
235
|
Net income
(loss)
|
316,062
|
(343,618)
|
(48,635)
|
|
525,227
|
(539,958)
|
|
(76,425)
|
Less: net
income (loss) attributable to
non-controlling interests
|
-
|
49
|
7
|
|
200
|
48
|
|
7
|
Net income
(loss) attributable to
X Financial shareholders
|
316,062
|
(343,667)
|
(48,642)
|
|
525,027
|
(540,006)
|
|
(76,432)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
316,062
|
(343,618)
|
(48,635)
|
|
525,227
|
(539,958)
|
|
(76,425)
|
Other
comprehensive income, net of tax of nil:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
21,614
|
(1,906)
|
(270)
|
|
2,731
|
10,209
|
|
1,445
|
Comprehensive
income (loss)
|
337,676
|
(345,524)
|
(48,905)
|
|
527,958
|
(529,749)
|
|
(74,980)
|
Less: comprehensive
income (loss) attributable to
non controlling interests
|
-
|
49
|
7
|
|
200
|
48
|
|
7
|
Comprehensive
income (loss) attributable to
X Financial shareholders
|
337,676
|
(345,573)
|
(48,912)
|
|
527,758
|
(529,797)
|
|
(74,987)
|
|
|
|
|
|
|
|
|
|
Net income per
share--basic
|
1.01
|
(1.07)
|
(0.15)
|
|
1.70
|
(1.68)
|
|
(0.24)
|
Net income per
share--diluted
|
0.97
|
(1.07)
|
(0.15)
|
|
1.63
|
(1.68)
|
|
(0.24)
|
|
|
|
|
|
|
|
|
|
Net income per
ADS--basic
|
2.02
|
(2.14)
|
(0.30)
|
|
3.40
|
(3.36)
|
|
(0.48)
|
Net income per
ADS--diluted
|
1.94
|
(2.14)
|
(0.30)
|
|
3.26
|
(3.36)
|
|
(0.48)
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares
outstanding--basic
|
312,856,055
|
320,806,405
|
320,806,405
|
|
309,459,601
|
320,737,174
|
|
320,737,174
|
Weighted
average number of ordinary shares
outstanding--diluted
|
325,115,232
|
326,779,421
|
326,779,421
|
|
321,718,778
|
326,710,190
|
|
326,710,190
|
X
Financial
|
Unaudited
Reconciliations of GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(In thousands,
except for share and per share data)
|
2019
|
2020
|
2020
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
GAAP net income
(loss)
|
316,062
|
(343,618)
|
(48,635)
|
|
525,227
|
(539,958)
|
(76,425)
|
Add: Share-based
compensation expenses (net of tax of nil)
|
38,954
|
17,754
|
2,513
|
|
81,153
|
54,156
|
7,665
|
Non-GAAP adjusted
net income (loss)
|
355,016
|
(325,864)
|
(46,122)
|
|
606,380
|
(485,802)
|
(68,760)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to X Financial shareholders
|
316,062
|
(343,667)
|
(48,642)
|
|
525,027
|
(540,006)
|
(76,432)
|
Add: Share-based
compensation expenses (net of tax of nil)
|
38,954
|
17,754
|
2,513
|
|
81,153
|
54,156
|
7,665
|
Non-GAAP adjusted
net income (loss) attributable to
X Financial shareholders
|
355,016
|
(325,913)
|
(46,129)
|
|
606,180
|
(485,850)
|
(68,767)
|
|
|
|
|
|
|
|
|
Non-GAAP
adjusted net income (loss) per share--basic
|
1.13
|
(1.02)
|
(0.14)
|
|
1.96
|
(1.51)
|
(0.21)
|
Non-GAAP
adjusted net income (loss) per
share--diluted
|
1.09
|
(1.02)
|
(0.14)
|
|
1.88
|
(1.51)
|
(0.21)
|
|
|
|
|
|
|
|
|
Non-GAAP
adjusted net income (loss) per ADS--basic
|
2.26
|
(2.04)
|
(0.29)
|
|
3.92
|
(3.02)
|
(0.42)
|
Non-GAAP
adjusted net income (loss) per ADS--diluted
|
2.18
|
(2.04)
|
(0.29)
|
|
3.76
|
(3.02)
|
(0.42)
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares outstanding
--basic
|
312,856,055
|
320,806,405
|
320,806,405
|
|
309,459,601
|
320,737,174
|
320,737,174
|
Weighted
average number of ordinary shares outstanding
--diluted
|
325,115,232
|
326,779,421
|
326,779,421
|
|
321,718,778
|
326,710,190
|
326,710,190
|
View original
content:http://www.prnewswire.com/news-releases/x-financial-reports-second-quarter-2020-unaudited-financial-results-301115523.html
SOURCE X Financial