Technology
X Financial Reports First Quarter 2024 Unaudited Financial Results
Published
4 months agoon
By
SHENZHEN, China, May 30, 2024 /PRNewswire/ — X Financial (NYSE: XYF) (the “Company” or “we”), a leading online personal finance company in China, today announced its unaudited financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Operational Highlights
Three Months Ended
March 31, 2023
Three Months Ended
December 31, 2023
Three Months Ended
March 31, 2024
QoQ
YoY
Total loan amount facilitated and
originated (RMB in million)
24,088
26,134
21,505
(17.7 %)
(10.7 %)
Number of active borrowers
1,523,738
1,603,760
1,369,410
(14.6 %)
(10.1 %)
The total loan amount facilitated and originated[1] in the first quarter of 2024 was RMB21,505 million, compared with RMB24,088 million in the same period of 2023.Total number of active borrowers[2] was 1,369,410 in the first quarter of 2024, compared with 1,523,738 in the same period of 2023.
As of March 31, 2023
As of December 31, 2023
As of March 31, 2024
Total outstanding loan balance (RMB in million)
41,531
48,847
43,812
Delinquency rates for all outstanding loans that are past
due for 31-60 days
1.05 %
1.57 %
1.61 %
Delinquency rates for all outstanding loans that are past
due for 91-180 days
2.40 %
3.12 %
4.37 %
The total outstanding loan balance[3] as of March 31, 2024 was RMB43,812 million, compared with RMB41,531 million as of March 31, 2023.The delinquency rate for all outstanding loans that are past due for 31-60 days[4] as of March 31, 2024 was 1.61%, compared with 1.05% as of March 31, 2023.The delinquency rate for all outstanding loans that are past due for 91-180 days[5] as of March 31, 2024 was 4.37%, compared with 2.40% as of March 31, 2023.
[1] Represents the total amount of loans that the Company facilitated and originated during the relevant period.
[2] Represents borrowers who made at least one transaction on the Company’s platform during the relevant period.
[3] Represents the total amount of loans outstanding for loans that the Company facilitated and originated at the end of the relevant period. Loans that are delinquent for more than 60 days are charged-off and are excluded in the outstanding loan balance, except for Xiaoying Housing Loan. As Xiaoying Housing Loan is a secured loan product and the Company is entitled to payment by exercising its rights to the collateral, the Company does not exclude Xiaoying Housing Loan delinquent for more than 60 days in the outstanding loan balance.
[4] Represents the balance of the outstanding principal and accrued outstanding interest for loans that were 31 to 60 days past due as a percentage of the total balance of outstanding principal and accrued outstanding interest for loans that the Company facilitated and originated as of a specific date. Loans that are delinquent for more than 60 days are charged-off and excluded in the calculation of delinquency rate by balance. Xiaoying Housing Loan was launched in 2015 and ceased in 2019, and all the outstanding loan balance of housing loan as of March 31, 2023, December 31, 2023 and March 31, 2024 were overdue more than 60 days. To make the delinquency rate by balance comparable, the Company excludes Xiaoying Housing Loan in the calculation of delinquency rate.
[5] To make the delinquency rate by balance comparable to the peers, the Company also defines the delinquency rate as the balance of the outstanding principal and accrued outstanding interest for loans that were 91 to 180 days past due as a percentage of the total balance of outstanding principal and accrued outstanding interest for the loans that the Company facilitated and originated as of a specific date. Loans that are delinquent for more than 180 days are excluded in the calculation of delinquency rate by balance, except for Xiaoying Housing Loan. All the outstanding loan balance of housing loan as of March 31, 2023, December 31, 2023 and March 31, 2024 were overdue more than 180 days. To make the delinquency rate by balance comparable, the Company excludes Xiaoying Housing Loan in the calculation of delinquency rate.
First Quarter 2024 Financial Highlights
(In thousands, except for share and per share
data)
Three Months Ended
March 31, 2023
Three Months Ended
December 31, 2023
Three Months Ended
March 31, 2024
QoQ
YoY
RMB
RMB
RMB
Total net revenue
1,004,934
1,192,664
1,207,974
1.3 %
20.2 %
Total operating costs and expenses
(677,151)
(938,472)
(831,433)
(11.4 %)
22.8 %
Income from operations
327,783
254,192
376,541
48.1 %
14.9 %
Net income
284,346
188,968
363,139
92.2 %
27.7 %
Non-GAAP adjusted net income
306,525
230,782
322,205
39.6 %
5.1 %
Net income per ADS—basic
5.94
3.90
7.44
90.8 %
25.3 %
Net income per ADS—diluted
5.82
3.84
7.32
90.6 %
25.8 %
Non-GAAP adjusted net income per ADS—basic
6.36
4.74
6.60
39.2 %
3.8 %
Non-GAAP adjusted net income per ADS—diluted
6.24
4.68
6.54
39.7 %
4.8 %
Total net revenue in the first quarter of 2024 was RMB1,208.0 million (US$167.3 million), representing an increase of 20.2% from RMB1,004.9 million in the same period of 2023.Income from operations in the first quarter of 2024 was RMB376.5 million (US$52.2 million), compared with RMB327.8 million in the same period of 2023.Net income in the first quarter of 2024 was RMB363.1 million (US$50.3 million), compared with RMB284.3 million in the same period of 2023.Non-GAAP[6] adjusted net income in the first quarter of 2024 was RMB322.2 million (US$44.6 million), compared with RMB306.5 million in the same period of 2023.Net income per basic and diluted American depositary share (“ADS”) [7] in the first quarter of 2024 was RMB7.44 (US$1.03) and RMB7.32 (US$1.01), compared with RMB5.94 and RMB5.82, respectively, in the same period of 2023.Non-GAAP adjusted net income per basic and adjusted diluted ADS in the first quarter of 2024 was RMB6.60 (US$0.91) and RMB6.54 (US$0.91), compared with RMB6.36 and RMB6.24, respectively, in the same period of 2023.
[6] The Company uses in this press release the following non-GAAP financial measures: (i) adjusted net income (loss), (ii) adjusted net income (loss) per basic ADS, and (iii) adjusted net income (loss) per diluted ADS, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments and impairment losses on long-term investments. For more information on non-GAAP financial measure, please see the section of “Use of Non-GAAP Financial Measures Statement” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
[7] Each American depositary share (“ADS”) represents six Class A ordinary shares.
Mr. Kent Li, President of the Company, commented, “We are pleased to start 2024 with a solid financial performance in the first quarter. We continued to implement our strategy of proactively and dynamically adjusting loan volumes based on close monitoring of asset quality dynamics and this, again, proved effective in securing our profitability. As a result, despite a year-over-year and quarter-over-quarter decline in the loan volume, both our top and bottom lines increased on a yearly and quarterly basis, with notable improvements in profits.”
“In the first quarter, the total loan amount facilitated and originated decreased by 11% year-over-year and 18% quarter-over-quarter to RMB22 billion, in line with our guidance. Our total outstanding loan balance was RMB44 billion at the end of March 2024. Delinquency rates for outstanding loans past due for 31-60 days and 91-180 days were 1.61% and 4.37%, respectively, at the end of the quarter, compared to 1.05% and 2.40% a year ago. The increase in overdue loans as a percentage of total outstanding loans is primarily due to lower outstanding loan balances at this quarter end as a result of the proactive control of loans facilitated and originated that we initiated in the fourth quarter of last year. Excluding the impact of the reduced loan volume, asset quality begun to stabilize during this quarter. We remain committed to closely monitor borrowers through the entire credit cycle, continuously strengthening our risk control system, and taking all necessary measures to mitigate risks.”
“We are confident in our future profitable growth. With stabilized asset quality, we have clearer visibility on the loan volume for 2024 under our current strategy and expect the total loan amount facilitated and originated for the full year to be around RMB100 billion. Our commitment to sustainable profitability and shareholder value creation is unwavering.”
Mr. Frank Fuya Zheng, Chief Financial Officer of the Company, added, “We are very pleased with the solid financial results we achieved in the first quarter. Total net revenue was RMB1.2 billion, up 20% year-over-year and 1% quarter-over-quarter despite the decline in loan volumes. Thanks to our strict risk controls and improved operational efficiency, net income increased by 28% year-over-year and 92% quarter-over-quarter to RMB363 million. This once again demonstrates the effectiveness of our strategy, strong execution, and commitment to ensuring long-term profitability. Beginning this quarter, we combined borrower acquisition costs from origination and servicing expenses, indirect expenses of the borrower acquisitions from general and administrative expenses and sales and marketing expenses into borrower acquisitions and marketing expenses within total operating costs and expenses to provide a clearer breakdown of the Company’s expenses for investors. Going forward, we will continue to improve asset quality while optimizing borrower acquisition costs to drive sustainable profitability.”
“Our board of directors has authorized a new program to repurchase up to $20 million worth of our shares which will be effective from June 1, 2024 through November 30, 2025. We are confident in our position as a public company and will drive long-term returns for our shareholders.”
First Quarter 2024 Financial Results
Total net revenue in the first quarter of 2024 increased by 20.2% to RMB1,208.0 million (US$167.3 million) from RMB1,004.9 million in the same period of 2023, primarily due to growth in various disaggregated revenue compared with the same period of 2023. Please refer to analysis of disaggregation of revenue.
Three Months Ended March 31,
(In thousands, except for share and per share data)
2023
2024
YoY
RMB
% of Revenue
RMB
% of Revenue
Loan facilitation service
580,604
57.8 %
614,150
50.8 %
5.8 %
Post-origination service
121,273
12.1 %
152,742
12.6 %
25.9 %
Financing income
254,056
25.3 %
334,628
27.7 %
31.7 %
Guarantee income
–
0.0 %
32,926
2.7 %
100.0 %
Other revenue
49,001
4.8 %
73,528
6.2 %
50.1 %
Total net revenue
1,004,934
100.0 %
1,207,974
100.0 %
20.2 %
Loan facilitation service fees in the first quarter of 2024 increased by 5.8% to RMB614.2 million (US$85.1 million) from RMB580.6 million in the same period of 2023, primarily due to a decrease in the impact from expected prepayment risk this quarter compared with the same period of 2023.
Post-origination service fees in the first quarter of 2024 increased by 25.9% to RMB152.7 million (US$21.2 million) from RMB121.3 million in the same period of 2023, primarily due to the cumulative effect of increased volume of loans facilitated in the previous quarters. Revenues from post-origination services are recognized on a straight-line basis over the term of the underlying loans as the services are being provided.
Financing income in the first quarter of 2024 increased by 31.7% to RMB334.6 million (US$46.3 million) from RMB254.1 million in the same period of 2023, primarily due to an increase in average loan balances compared with the same period of 2023.
Guarantee income in the first quarter of 2024 was RMB32.9 million (US$4.6 million), primarily due to an increase in guarantee income arising from financing guarantee business operated by a subsidiary which holds the financing guarantee license and commenced the financing guarantee business in second half of 2023.
Other revenue in the first quarter of 2024 increased by 50.1% to RMB73.5 million (US$10.2 million), compared with RMB49.0 million in the same period of 2023, primarily due to an increase in referral service fee for introducing borrowers to other platforms.
Origination and servicing expenses in the first quarter of 2024 increased by 14.8% to RMB426.5 million (US$59.1 million) from RMB371.5 million in the same period of 2023, primarily due to the increase in collection expenses resulting from the cumulative effect of increased volume of loans facilitated and provided in the previous quarters compared with the same period of 2023.
Borrower acquisitions and marketing expenses in the first quarter of 2024 decreased by 8.7% to RMB248.4 million (US$34.4 million) from RMB271.9 million in the same period of 2023, primarily due to the decrease in the borrower acquisition costs compared with the same period of 2023.
Provision for loans receivable in the first quarter of 2024 was RMB61.5 million (US$8.5 million), compared with RMB20.4 million in the same period of 2023, primarily due to an increase in loans receivable held by the Company as a result of the cumulative effect of increased volume of loans facilitated and provided in the previous quarters compared with the same period of 2023.
Provision for contingent guarantee liabilities in the first quarter of 2024 was RMB47.9 million (US$6.6 million), primarily due to the increase in guarantee liability arising from financing guarantee business operated by a subsidiary which holds the financing guarantee license and commenced the financing guarantee business in second half of 2023.
Income from operations in the first quarter of 2024 was RMB376.5 million (US$52.2 million), compared with RMB327.8 million in the same period of 2023.
Income before income taxes and gain from equity in affiliates in the first quarter of 2024 was RMB426.1 million (US$59.0 million), compared with RMB330.6 million in the same period of 2023.
Income tax expense in the first quarter of 2024 was RMB65.0 million (US$9.0 million), compared with RMB52.6 million in the same period of 2023.
Net income in the first quarter of 2024 was RMB363.1 million (US$50.3 million), compared with RMB284.3 million in the same period of 2023.
Non-GAAP adjusted net income in the first quarter of 2024 was RMB322.2 million (US$44.6 million), compared with RMB306.5 million in the same period of 2023.
Net income per basic and diluted ADS in the first quarter of 2024 was RMB7.44 (US$1.03), and RMB7.32 (US$1.01), compared with RMB5.94 and RMB5.82, respectively, in the same period of 2023.
Non-GAAP adjusted net income per basic and diluted ADS in the first quarter of 2024 was RMB6.60 (US$0.91), and RMB6.54 (US$0.91), compared with RMB6.36 and RMB6.24 respectively, in the same period of 2023.
Cash and cash equivalents was RMB1,413.1 million (US$195.7 million) as of March 31, 2024, compared with RMB1,195.4 million as of December 31, 2023.
Recent Development
Share Repurchase Plan
The Company today announced that its board of directors (the “Board”) authorized a new program to repurchase up to $20 million of its Class A shares and its Class A ordinary shares in the form of American depositary shares (together “the Shares”). This new share repurchase program, effective from June 1, 2024 through November 30, 2025, is in addition to the existing share repurchase plan approved in March 2022, and as further amended in September 2022 and November 2022, which has approximately $5.5 million remaining. The Company did not repurchase any shares during the first quarter of 2024.
Under the new share repurchase program, the Company may repurchase the Shares from time to time through various means, including open market transactions, privately negotiated transactions, and through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The manner, timing and amount of any share repurchases will be determined by the Company’s management in its discretion based on its evaluation of various factors.
Changes in the Board of Directors
On May 27, 2024, the Board approved the following changes to the composition of the Board.
Mr. Shengwen Rong has resigned from his respective positions as an independent non-executive director and chairman of the Audit Committee of the Board due to personal reason.
Mr. Zheng Xue has been appointed as the chairman of the Audit Committee of the Board to fill the vacancy resulting from Mr. Shengwen Rong’s resignation. Mr. Zheng Xue has resigned from his position as the chairman of the Nominating and Corporate Governance Committee of the Board.
Mr. Zheng Wan has been appointed as an independent non-executive director of the Board to fill the vacancy resulting from Mr. Shengwen Rong’s resignation. Mr. Zheng Wan has also been appointed as the chairman of the Nominating and Corporate Governance Committee of the Board to fill the vacancy resulting from Mr. Zheng Xue’s resignation.
Mr. Zheng Wan has served as a Group Director of M&A Integration at Cadence Design Systems Inc. since 2022. Mr. Zheng Wan served as a Director of M&A Integration at Snap Inc. from 2016 to 2018 and from 2020 to 2022. Mr. Zheng Wan served as a Global Director of M&A Integration at Airbnb Inc. from 2018 to 2020. Between 2006 and 2017, Mr. Zheng Wan served in multiple capacities at Google Inc., including as Finance Manager of Internal Audit and Risk Consulting, Corporate Development Manager, and Financial Planning & Analysis Manager. Mr. Zheng Wan received a master degree in political science from University of Utah in 2001 and an MBA degree from Duke University in 2004.
Business Outlook
The Company expects the total loan amount facilitated and originated for the second quarter of 2024 to be between RMB23.0 billion and RMB24.5 billion. For the full year of 2024, the Company expects the total loan amount facilitated and originated to be between RMB90 billion and RMB110 billion.
This forecast reflects the Company’s current and preliminary views, which are subject to changes.
Conference Call
X Financial’s management team will host an earnings conference call at 7:00 AM U.S. Eastern Time on May 31, 2024 (7:00 PM Beijing / Hong Kong Time on May 31, 2024).
Dial-in details for the earnings conference call are as follows:
United States:
1-888-346-8982
Hong Kong:
852-301-84992
Mainland China:
4001-201203
International:
1-412-902-4272
Passcode:
X Financial
Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.
A replay of the conference call may be accessed by phone at the following numbers until June 7, 2024:
United States:
1-877-344-7529
International:
1-412-317-0088
Passcode:
1086048
Additionally, a live and archived webcast of the conference call will be available at http://ir.xiaoyinggroup.com.
About X Financial
X Financial (NYSE: XYF) (the “Company”) is a leading online personal finance company in China. The Company is committed to connecting borrowers on its platform with its institutional funding partners. With its proprietary big data-driven technology, the Company has established strategic partnerships with financial institutions across multiple areas of its business operations, enabling it to facilitate and originate loans to prime borrowers under a risk assessment and control system.
For more information, please visit: http://ir.xiaoyinggroup.com.
Use of Non-GAAP Financial Measures Statement
In evaluating our business, we consider and use non-GAAP measures as supplemental measures to review and assess our operating performance. We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of the non-GAAP financial measures facilitates investors’ assessment of our operating performance and help investors to identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income (loss) from operations and net income (loss). We also believe that the non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.
We use in this press release the following non-GAAP financial measures: (i) adjusted net income (loss), (ii) adjusted net income (loss) per basic ADS, and (iii) adjusted net income (loss) per diluted ADS, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments and impairment losses on long-term investments. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, investors should not consider them in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.
We mitigate these limitations by reconciling the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2203 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 29, 2024.
Disclaimer
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the followings: the Company’s goals and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace’s products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is current as of the date of this announcement, and the Company does not undertake any obligation to update such information, except as required under applicable law.
Use of Projections
This announcement also contains certain financial forecasts (or guidance) with respect to the Company’s projected financial results. The Company’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections or guidance for the purpose of their inclusion in this announcement, and accordingly, they did not express an opinion or provide any other form assurance with respect thereto for the purpose of this announcement. This guidance should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could actual results to differ materially from those contained in the prospective financial information. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company, or that actual results will not diff materially from those set forth in the prospective financial information. Inclusion of the prospective financial information in this announcement should not be regarded as a representation by any person that the results contained in the prospective financial information will actually be achieved. You should review this information together with the Company’s historical information.
For more information, please contact:
X Financial
Mr. Frank Fuya Zheng
E-mail: ir@xiaoying.com
Christensen IR
In China
Mr. Rene Vanguestaine
Phone: +86-178-1749 0483
E-mail: rene.vanguestaine@christensencomms.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
X Financial
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except for share and per share data)
As of December 31, 2023
As of March 31, 2024
As of March 31, 2024
RMB
RMB
USD
ASSETS
Cash and cash equivalents
1,195,352
1,413,065
195,707
Restricted cash, net
749,070
776,500
107,544
Accounts receivable and contract assets, net
1,659,588
1,600,970
221,732
Loans receivable from Xiaoying Credit Loans and other loans, net
4,947,833
5,339,591
739,525
Deposits to institutional cooperators, net
1,702,472
1,595,967
221,039
Prepaid expenses and other current assets, net
48,767
27,619
3,825
Deferred tax assets, net
135,958
163,441
22,636
Long-term investments
493,411
496,179
68,720
Property and equipment, net
8,642
9,552
1,323
Intangible assets, net
36,810
37,033
5,129
Loan receivable from Xiaoying Housing Loans, net
8,657
8,657
1,199
Financial investments
608,198
618,404
85,648
Other non-current assets
55,265
51,665
7,156
TOTAL ASSETS
11,650,023
12,138,643
1,681,183
LIABILITIES
Payable to investors and institutional funding partners at amortized cost
3,584,041
3,770,872
522,259
Guarantee liabilities
61,907
94,955
13,151
Deferred guarantee income
46,597
103,665
14,357
Short-term borrowings
565,000
434,500
60,178
Accrued payroll and welfare
86,771
31,128
4,311
Other tax payable
289,819
270,968
37,529
Income tax payable
446,500
469,476
65,022
Accrued expenses and other current liabilities
595,427
607,901
84,193
Dividend payable
59,226
59,226
8,203
Other non-current liabilities
37,571
33,688
4,666
Deferred tax liabilities
30,040
39,775
5,509
TOTAL LIABILITIES
5,802,899
5,916,154
819,378
Commitments and Contingencies
Equity:
Common shares
207
207
29
Treasury stock
(111,520)
(106,682)
(14,775)
Additional paid-in capital
3,196,942
3,200,857
443,314
Retained earnings
2,692,018
3,055,157
423,134
Other comprehensive income
69,477
72,950
10,103
Total X Financial shareholders’ equity
5,847,124
6,222,489
861,805
Non-controlling interests
–
–
–
TOTAL EQUITY
5,847,124
6,222,489
861,805
TOTAL LIABILITIES AND EQUITY
11,650,023
12,138,643
1,681,183
X Financial
Unaudited Condensed Consolidated Statements of Comprehensive Income
Three Months Ended March 31,
(In thousands, except for share and per share data)
2023
2024
2024
RMB
RMB
USD
Net revenues
Loan facilitation service
580,604
614,150
85,059
Post-origination service
121,273
152,742
21,155
Financing income
254,056
334,628
46,345
Guarantee income
–
32,926
4,560
Other revenue
49,001
73,528
10,184
Total net revenue
1,004,934
1,207,974
167,303
Operating costs and expenses:
Origination and servicing[1]
371,484
426,547
59,076
Borrower acquisitions and marketing[1]
271,942
248,374
34,399
General and administrative[1]
38,068
38,474
5,329
(Reversal of) provision for accounts receivable and contract assets
(940)
8,655
1,199
Provision for loans receivable
20,377
61,540
8,523
Provision for contingent guarantee liabilities
–
47,893
6,633
Change in fair value of financial guarantee derivative[2]
(24,299)
–
–
Fair value adjustments related to Consolidated Trusts[2]
553
–
–
Reversal of provision for credit losses for deposits and other financial assets
(34)
(50)
(7)
Total operating costs and expenses
677,151
831,433
115,152
Income from operations
327,783
376,541
52,151
Interest income (expenses), net
(1,999)
(4,291)
(594)
Foreign exchange gain (loss)
3,018
(424)
(59)
Income (loss) from financial investments
(9,514)
50,246
6,959
Other income, net
11,332
4,046
560
Income before income taxes and gain from equity in affiliates
330,620
426,118
59,017
Income tax expense
(52,563)
(65,025)
(9,006)
Gain from equity in affiliates, net of tax
6,289
2,046
283
Net income
284,346
363,139
50,294
Less: net income attributable to non-controlling interests
–
–
–
Net income attributable to X Financial shareholders
284,346
363,139
50,294
Net income
284,346
363,139
50,294
Other comprehensive income, net of tax of nil:
Gain from equity in affiliates
2
30
4
Income from financial investments
–
2,225
308
Foreign currency translation adjustments
(7,261)
1,218
169
Comprehensive income
277,087
366,612
50,775
Less: comprehensive income attributable to non-controlling interests
–
–
–
Comprehensive income attributable to X Financial shareholders
277,087
366,612
50,775
Net income per share—basic
0.99
1.24
0.17
Net income per share—diluted
0.97
1.22
0.17
Net income per ADS—basic
5.94
7.44
1.03
Net income per ADS—diluted
5.82
7.32
1.01
Weighted average number of ordinary shares outstanding—basic
288,027,062
293,788,724
293,788,724
Weighted average number of ordinary shares outstanding—diluted
294,330,508
296,894,415
296,894,415
[1] Starting in the first quarter of 2024, management has concluded to separate expenses related to borrower acquisitions from origination and servicing expenses and indirect expenses of the borrower acquisitions
from general and administrative expenses to a single line item as these expenses become more and more significant and thus deemed to be useful to financial statement users. Furtherly, management has
determined to embed the sales and marketing expenses, which is not considered as material, in other line item. In conclusion, management has decided to combine these two line items into one captioned borrower
acquisitions and marketing expenses. Management has correspondingly conformed prior period presentation to current period presentation to enhance comparability. This change in presentation does not affect any
subtotal line on the face of consolidated statements of comprehensive income.
In thousands, except for share and per
share data
Three Months Ended March 31, 2023
Changes
before re-grouping
after re-grouping
RMB
RMB
RMB
Origination and servicing
633,809
371,484
(262,325)
Borrower acquisitions and marketing
–
271,942
271,942
Sales and marketing
2,038
–
(2,038)
General and administrative
45,647
38,068
(7,579)
[2] Starting in the first quarter of 2024, management has considered the facts that fair value change related to financial guarantee services and Consolidated Trusts are generated from ordinary course of businesses,
and has concluded to reclass the amount to captions above total operating costs and expenses. Prior to the reclassification, management classified all amount of fair value changes to captions below total operating
costs and expenses. This reclassification does not have impact on net income for any prior periods presented.
X Financial
Unaudited Reconciliations of GAAP and Non-GAAP Results
Three Months Ended March 31,
(In thousands, except for share and per share data)
2023
2024
2024
RMB
RMB
USD
GAAP net income
284,346
363,139
50,294
Less: Income (loss) from financial investments (net of tax of nil)
(9,514)
50,246
6,959
Less: Impairment losses on financial investments (net of tax of nil)
–
–
–
Less: Impairment losses on long-term investments (net of tax)
–
–
–
Add: Share-based compensation expenses (net of tax of nil)
12,665
9,312
1,290
Non-GAAP adjusted net income
306,525
322,205
44,625
Non-GAAP adjusted net income per share—basic
1.06
1.10
0.15
Non-GAAP adjusted net income per share—diluted
1.04
1.09
0.15
Non-GAAP adjusted net income per ADS—basic
6.36
6.60
0.91
Non-GAAP adjusted net income per ADS—diluted
6.24
6.54
0.91
Weighted average number of ordinary shares outstanding—basic
288,027,062
293,788,724
293,788,724
Weighted average number of ordinary shares outstanding—diluted
294,330,508
296,894,415
296,894,415
View original content:https://www.prnewswire.com/news-releases/x-financial-reports-first-quarter-2024-unaudited-financial-results-302159333.html
SOURCE X Financial
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G42 Collaborates with NVIDIA to Deliver Next-Generation Climate Solutions Using Earth-2
Published
15 mins agoon
September 20, 2024By
ABU DHABI, UAE, Sept. 20, 2024 /PRNewswire/ — G42, a leader in AI and cloud computing, today announced that it is partnering with NVIDIA to advance climate technology with a focus on developing AI solutions aimed at dramatically enhancing the accuracy of weather forecasting globally.
The collaboration builds on NVIDIA’s Earth-2, an open platform that accelerates climate and weather predictions with interactive, AI-augmented, high-resolution simulation. G42 and NVIDIA will initially focus on a square-kilometer resolution weather forecasting model that improves the accuracy of meteorological predictions.
Key to this initiative is the establishment of a new operational base and Climate Tech Lab in Abu Dhabi. This state-of-the-art facility will serve as a hub for research and development, driving forward both companies’ commitment to environmental sustainability. This facility will also mobilize the creation of tailored climate and weather solutions that leverage over 100 petabytes of geophysical data assets.
Peng Xiao, Group CEO of G42, said, “This initiative with NVIDIA is a testament to our commitment to applying AI in ways that not only innovate but also solve critical global challenges. Establishing the Earth-2 Climate Tech Lab in Abu Dhabi allows us to leverage our unique capabilities and insights to foster a sustainable future for the world.”
In addition to fostering innovation in climate technology, the initiative will focus on building a robust framework for integrating enhanced weather prediction capabilities with comprehensive data metrics and visualization. This will assist organizations worldwide in achieving their sustainability goals through well-informed, data-driven environmental strategies.
“Our collaboration with G42 marks a pivotal step toward harnessing AI to understand and predict climate phenomena with unprecedented accuracy,” said Jensen Huang, founder and CEO of NVIDIA. “The Earth-2 Climate Tech Lab will propel environmental solutions using the most advanced accelerated computing and AI technology to benefit millions of people around the world.”
By uniting G42’s AI expertise with NVIDIA’s computational acumen, this partnership aims to deliver transformative climate solutions that combine scientific accuracy with real-world applicability, driving impactful change across industries and ecosystems.
About G42
G42 is a technology holding group, a global leader in creating visionary artificial intelligence for a better tomorrow. Born in Abu Dhabi and operating worldwide, G42 champions AI as a powerful force for good across industries. From molecular biology to space exploration and everything in between, G42 realizes exponential possibilities, today.
To know more visit www.g42.ai.
Media contacts
Media and PR Team, G42
media@g42.ai
View original content:https://www.prnewswire.co.uk/news-releases/g42-collaborates-with-nvidia-to-deliver-next-generation-climate-solutions-using-earth-2-302253818.html
Technology
Kawasaki and CB&I Sign Strategic Collaborative Agreement for Promoting Commercial-Use Liquefied Hydrogen Supply Chain
Published
1 hour agoon
September 20, 2024By
HOUSTON, Sept. 19, 2024 /PRNewswire/ — Kawasaki Heavy Industries, Ltd. (Kawasaki) and CB&I, a wholly owned unrestricted subsidiary of McDermott, announced today their signing of a strategic agreement for promoting a commercial-use liquefied hydrogen (LH2) supply chain and realizing a zero-carbon-emission society. The signing ceremony took place at Gastech Exhibition & Conference in Houston on September 18, 2024.
“We are very pleased for this opportunity to build and launch a commercial liquefied hydrogen supply chain in cooperation with CB&I,” said Motohiko Nishimura, President, Energy Solutions & Marine Engineering Company, Kawasaki Heavy Industries, Ltd. “By taking advantage of both companies’ strengths and specialized know-how, we aim to cost down hydrogen, strengthen hydrogen supply chain competitiveness, and accelerate the transition to a zero-carbon society.”
Both companies will use their specialized know-how to provide infrastructure that will enable commercial-scale international LH2 supply chains in order to help achieve carbon-neutrality. By leveraging our combined expertise to deliver large-scale LH2 infrastructure solutions, CB&I and Kawasaki are removing barriers, driving down costs and enhancing scalability across the entire supply chain.
“This strategic partnership represents a significant advancement in liquid hydrogen storage capabilities,” said Mark Butts, Senior Vice President of CB&I. “Our technical expertise and extensive experience in liquid hydrogen storage position us at the forefront of the energy transition, delivering reliable storage solutions and executing projects worldwide with proven success.”
Under this agreement, the companies will provide infrastructure to advance the global realization of a sustainable energy economy and meet decarbonization targets. This collaboration will reduce LH2 infrastructure costs and contribute to more widespread use of this clean and efficient energy source.
About CB&I
CB&I is the world’s leading designer and builder of storage facilities, tanks, and terminals. With more than 60,000 structures completed throughout its 130-year history, CB&I has the global expertise and strategically located operations to provide its customers world-class storage solutions for even the most complex energy infrastructure projects. CB&I is a wholly owned unrestricted subsidiary of McDermott. To learn more, visit www.cbi.com.
About McDermott
McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott’s innovative expertise and capabilities advance the next generation of global energy infrastructure—empowering a brighter, more sustainable future for us all. Operating in over 54 countries, McDermott’s locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About Kawasaki Heavy Industries, Ltd.
Kawasaki Heavy Industries, Ltd. is general engineering manufacturer with over 125 years of experience manufacturing products spanning land, sea and air. Kawasaki established the Kawasaki Group’s new vision statement, “Group Vision 2030: Trustworthy Solutions for the Future,” and is focusing on three fields, “A Safe and Secure Remotely-Connected Society,” “Near-Future Mobility,” and “Energy and Environmental Solutions” in order to provide solutions for social issues. For “Energy and Environmental Solutions” in particular, by securing the technology necessary for the entire supply chain (for production, transportation, storage and utilization) ahead of the rest of the world, Kawasaki aims to bring about a society that utilizes hydrogen, the ultimate clean energy that emits no carbon dioxide when used. To learn more, visit https://global.kawasaki.com/en.
Forward-Looking Statements
McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about the expected benefits from the collaboration agreement discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit or capital markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; actions by lenders, other creditors, customers and other business counterparties of McDermott and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. This communication reflects the views of McDermott’s management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
For media inquiries, please use the contact information below:
Reba Reid
Global Media Relations
+1 281 588 5636
RReid@McDermott.com
Kristi Krupala-Grove
CB&I Media Relations
+1 346 313 9636
KKrupala2@mcdermott.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/kawasaki-and-cbi-sign-strategic-collaborative-agreement-for-promoting-commercial-use-liquefied-hydrogen-supply-chain-302253698.html
SOURCE McDermott International, Ltd
Technology
Halal Route Application – Eat, Travel around Thailand, Safe and Sound Halal Style
Published
1 hour agoon
September 20, 2024By
BANGKOK, Thailand, Sept. 20, 2024 /PRNewswire/ — The Halal Science Center, Chulalongkorn University has developed Halal Route, an application that lists restaurants, lodging, mosques, prayer directions, and tourist attractions in Thailand under Islamic tourism principles. It hopes to help Muslim tourists travel in Thailand with peace of mind, and supports tourism industry operators to grow and welcome a growing number of Muslim tourists.
The Tourism Authority of Thailand (TAT) predicts that in 2024 there will be around 168 million Islamic tourists worldwide. According to the Mastercard-Crescent Rating Global Muslim Travel Index (GMTI 2024), Thailand is the 32nd most popular destination for Muslim tourists. However, the major problem Muslim tourists encounter in Thailand is finding Halal-accredited restaurants, hotels, accommodations, or tourist attractions with service areas (such as prayer rooms) that are compliant with the Islamic way.
“Halal Route” is a travel aggregator app that collects searchable information on Halal restaurants, mosques, prayer locations, times, and directions for prayers (the qibla), tourist attractions, Muslim villages or communities, hotels, accommodations, etc. This app is linked to Google Maps for navigation with precision. It also supports 3 languages, Thai, English, and Arabic, so that Muslim tourists can live and travel more comfortably and with peace of mind,” said Mr.Erfun Weahama, Science Service Officer, Halal Route App development team.
Dr. Anat Denyingyot, Assistant Director of the Halal Science Center, emphasized that the Halal Route application has the most reliable and comprehensive information on halal tourism in Thailand today. “All restaurants and locations have had on-site visits and are audited according to standards approved by a trusted authority or organization, such as certifications from religious organizations or halal food-related entities, as well as management systems to guarantee and be responsible for halal conditions (the HAL-Q system),” Dr. Anat assured.
Currently, the application has more than 1,100 restaurants in its database, and new locations and services are being updated, covering more than 40 provinces from north to south of Thailand that are popular among tourists.
“Halal Route is not only for navigation, but a platform that connects Muslim communities from around the world who have the opportunity to visit Thailand,” Associate Professor Dr.Winai Dahlan, Director of the Halal Science Center concluded.
The Halal Route application is free to download on both iOS and Android systems.
Read the full article at https://www.chula.ac.th/en/highlight/185916/
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/halal-route-application—eat-travel-around-thailand-safe-and-sound-halal-style-302251312.html
SOURCE Chulalongkorn University
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