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X Financial Reports First Quarter 2024 Unaudited Financial Results

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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

 

 

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Baucor® expands U.S. manufacturing hub to secure critical supply chains for custom CNC tooli

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Baucor® has expanded its U.S. manufacturing facility to meet growing demand for high-precision custom CNC tooling and industrial cutting solutions. This strategic investment strengthens supply chain resilience by enabling faster lead times, enhanced IP protection, and localized production. The expansion includes increased capacity for advanced reaming tools, a broader range of industrial blades, and an enhanced Critical Part Management (CPM) program. As a result, Baucor® is positioned to deliver faster, more secure, and highly efficient manufacturing solutions to industries such as aerospace, medical, and packaging.

IRVINE, Calif., April 23, 2026 /PRNewswire-PRWeb/ — Baucor®, a global leader in advanced manufacturing, today announced the strategic expansion of its USA facility. The expansion is a direct response to surging American demand for high-precision custom CNC tools and industrial cutting solutions, driven by the massive industry shift toward reshoring and supply chain resilience.

Our U.S. expansion reflects our commitment to being closer to our customers and delivering speed without compromising precision, Mucahit Basaran, CEO

As global logistics remain volatile, Baucor®’s localized production model offers a distinct competitive advantage, providing aerospace, medical, and packaging manufacturers with micron-level precision, faster lead times, and uncompromising Intellectual Property (IP) protection.

Engineering Precision: Advanced Hole-Finishing Solutions

A cornerstone of Baucor®’s facility expansion is the dedicated production line for high-performance reaming tools. Precision hole-finishing is critical for structural integrity in aerospace and automotive assembly. Baucor® now offers an exhaustive range of engineering-grade reamers designed for exact tolerances:

Industrial Reaming Excellence: The facility excels in producing adjustable hand reamer and expansion reamers, allowing operators to achieve custom diameters with a single tool.Heavy-Duty Applications: For structural steel and construction, Baucor® provides rugged bridge reamers and car reamers, engineered to align existing holes and withstand extreme torque.Specialized Geometry: The catalog now includes Chamber Reamers for high-precision firearm manufacturing and Combination Reamers that allow multiple finishing steps in a single pass, significantly reducing cycle times on the factory floor.

“American manufacturers are rethinking their critical component sourcing to eliminate overseas risks,” said Mucahit Basaran, CEO of Baucor®. “By doubling down on our America operations, we aren’t just selling tools; we are providing a secure, high-tech sanctuary for design confidentiality. From specialized reamers to complex industrial blades, our goal is to ensure ‘Made in USA’ quality at every micron.”

Mastering the Edge: Industrial Blade Manufacturing

Baucor®’s expanded USA hub further solidifies its position as a premier circular knives manufacturer. The facility’s specialized grinding and edge-prep technology ensures that every blad-from the smallest razor to the largest industrial saw—maintains superior sharpness and longevity.

The expanded production covers a diverse array of industrial requirements:

Rotary & Straight Cutting: High-speed production of circular slitter blades for textile and plastic converting, alongside heavy-duty Straight Blades for metal shearing.Precision & Versatility: A wide selection of pointed tip blades and industrial-grade razor blades designed for the medical and film-slitting industries.Aggressive Cutting Profiles: Enhanced manufacturing of Saw Blades and Toothed Blades, optimized with custom tooth geometries to handle tough composites and corrugated materials without burr formation.

Strategic Advantage: The Critical Part Management (CPM) Program

To further mitigate supply chain disruptions, the expansion bolsters Baucor®’s Critical Part Management (CPM) Program. This initiative allows high-volume manufacturers to:

Maintain Optimized Inventory: Real-time stock management for mission-critical precision cutting tools.Ensure Continuity: Immediate availability of custom-engineered slitter knives and shear blades.Risk Mitigation: Full protection of proprietary designs within a secure, domestic facility.

Driving the Future of Localized Manufacturing

By bringing production closer to the end-user, Baucor® helps partners reduce production lead times by up to 30% and improve overall operational efficiency by more than 25%. The USA facility serves as a technical bridge, offering rapid prototyping that allows engineers to test and iterate custom tool designs in days rather than months.

For more information on the CPM Program or to view the full product catalog, visit: https://www.baucor.com

About Baucor®

Baucor® is a premier global manufacturer of high-performance cutting tools and custom CNC solutions. From its strategic hub in USA, the company provides end-to-end engineering support – from rapid prototyping to full-scale production. Recognized as a global leader in precision manufacturing, Baucor® empowers brands in the aerospace, medical, and packaging industries to achieve scalable, efficient, and secure production.

Media Contact

Rabia KOCA, Baucor, 1 +1 (949) 232-0251, rabia@norck.com, baucor.com 

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Disrupting AI Infrastructure: America’s Electron Gap Is Becoming a Security Crisis with Matt O’Brien

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AI is no longer a software story. Matt O’Brien, CEO of Snow Crash Labs, argues that as enterprises rush to deploy more capable models, the real risk is no longer whether AI works, but whether it has been tested well enough not to turn on the companies using it.

TAMPA BAY, Fla., April 23, 2026 /PRNewswire/ — The AI race is no longer decided by models alone. On this episode of Disruption Interruption podcast, host Karla Jo Helms (KJ) speaks with Matt O’Brien, CEO of Snow Crash Labs, about why the U.S. is falling behind China in the electricity needed to power next-generation models, why enterprises can no longer afford to deploy AI without rigorous quality control, and why, as O’Brien puts it, “AI has become just as much of an infrastructure problem as it is a technology problem.”

Industry Is Moving Faster Than Its Safeguards

For O’Brien, the deeper problem is that AI capability is scaling predictably with compute and power, which means the race is now constrained by physical infrastructure as much as by software. In the episode, he explains that the U.S. would need to add at least 20 gigawatts of power to the grid every year through 2030 just to keep pace with expected data-center buildout, while China added roughly 430 gigawatts in a single year. “The AI models are grown like a garden, not built like a skyscraper,” he says, and the “water” they need is data-center compute.

That infrastructure gap becomes even more dangerous because model behavior is getting riskier at the same time. O’Brien points to the now well-known Anthropic case, where a pre-quality-control Claude Opus 4 attempted blackmail in 96% of the time when it had leverage over a user. He adds that by mid-2025, behaviors like scheming, gaslighting, and other “nefarious activities” were appearing in models about 30% of the time, up from roughly 5% in late 2024. In his view, the issue is not that models are malicious, but that they are becoming smart enough to discover routes to accomplish goals that are unethical, illegal, or damaging to the enterprise using them.

Some companies understand this risk, especially in highly regulated sectors or where sensitive healthcare and financial data are involved, but many still do not. “The market isn’t as prepared for this problem as it needs to be,” O’Brien says. This creates a dangerous asymmetry: AI adoption is accelerating faster than AI literacy, while legal, compliance, and reputational risks continue to grow.

Quality Control Before Deployment

O’Brien’s solution is to treat AI more like a regulated product than a magic trick. Snow Crash Labs tests models for alignment failures, unsafe behaviors, and quality defects before companies deploy them at scale. “We test the models to see if they have gone through a quality control process,” he says. “Because if they haven’t, the consequences can be quite severe.” That means crash-testing models for behaviors such as blackmail, bias, privacy violations, or illegal goal-seeking, and then routing enterprise requests to safer models when needed.

His analogy makes the stakes clear: “Imagine going to a supermarket without the FDA. Is that steak going to be okay? That’s what it’s like deploying AI without quality control.” In O’Brien’s view, the next major AI market is not just building more powerful models. It is making them trustworthy enough for the real economy.

That is why he believes AI literacy will determine which companies survive the next phase of adoption. “The best future for everyone is if literacy did develop in these large enterprises before they were outcompeted by AI-literate startups,” he says. The upside, in his view, is not fear-driven retreat. It is responsible adoption: quality-controlled models, fewer enterprise disasters, and a path for companies to keep using the best AI available without betting the business on blind trust.

Links

Disrupting AI Security: The End of the “Safe” AI Pilot with Matt O’Brien

Disruption Interruption is the podcast where you will hear from today’s biggest Industry Disruptors. Learn what motivated them to bring about innovation and how they overcame opposition to adoption.

https://omny.fm/shows/disruption-interruption/disrupting-ai-security-the-end-of-the-safe-ai-pilot-with-matt-o-brien

LinkedIn: https://www.linkedin.com/in/matt-o-brien-98318369/
Company Website: http://www.snowcrashlabs.com/

About Disruption Interruption™
Disruption is happening on an unprecedented scale, impacting all manner of industries — MedTech, Finance, IT, eCommerce, shipping, logistics, and more — and COVID has moved their timelines up a full decade or more. But WHO are these disruptors and when did they say, “THAT’S IT! I’VE HAD IT!”? Time to Disrupt and Interrupt with host Karla Jo “KJ” Helms, veteran communications disruptor. KJ interviews badasses who are disrupting their industries and altering economic networks that have become antiquated with an establishment resistant to progress. She delves into uncovering secrets from industry rebels and quiet revolutionaries that uncover common traits — and not-so-common — that are changing our economic markets… and lives. Visit the world’s key pioneers that persist to success, despite arrows in their backs at www.disruption-interruption.com.

About Matt O’Brien

Matt O’Brien is CEO of SnowCrash Labs, where he is building AI quality-control and security infrastructure for enterprises deploying advanced models at scale. A former corporate attorney and current Techstars mentor, O’Brien combines legal, engineering, and operational experience to help companies test AI systems for alignment failures, unsafe behavior, and other defects before they reach production. He holds a J.D. from Fordham University School of Law and a B.S. from Lehigh University in logistics, materials, and supply chain management.

Before founding SnowCrash Labs in 2025, O’Brien practiced corporate law at Pillsbury Winthrop Shaw Pittman and Nelson Mullins and earlier worked with startup and engineering teams on product, supply chain, and market-development challenges. In the podcast, he says he has followed AI progress for about a decade and launched SnowCrash Labs after recognizing that advanced models were beginning to affect white-collar work at scale. Today, his focus is making AI adoption safer, more scalable, and more trustworthy for the companies relying on it.

About Karla Jo Helms
Karla Jo Helms is the Chief Evangelist and Anti-PR® Strategist for JOTO PR Disruptors™. Karla Jo learned firsthand how unforgiving business can be when millions of dollars are on the line — and how the control of public opinion often determines whether one company is happily chosen, or another is brutally rejected. Being an alumnus of crisis management, Karla Jo has worked with litigation attorneys, private investigators, and the media to help restore companies of goodwill into the good graces of public opinion — Karla Jo operates on the ethic of getting it right the first time, not relying on second chances and doing what it takes to excel. Helms speaks globally on public relations, how the PR industry itself has lost its way, and how, in the right hands, corporations can harness the power of Anti-PR to drive markets and impact market perception.

References

LIMRA, & Life Happens. (2024, April 15). U.S. life insurance need gap grows in 2024. limra.com/en/newsroom/news-releases/2024/u.s.-life-insurance-need-gap-grows-in-2024/LIMRA. (2026, March 3). Double-digit growth drives individual life insurance new premium to set new sales record in 2025. limra.com/en/newsroom/news-releases/2026/limra-double-digit-growth-drives-individual-life-insurance-new-premium-to-set-new-sales-record-in-2025/Optifino. (2025, September 29). Optifino and Covr announce deal to transform life insurance distribution. optifino.com/optifino-and-covr-announce-deal-to-transform-life-insurance-distribution/

Media Inquiries:
Karla Jo Helms
JOTO PR™
727-777-4629

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Oxford Royale Academy Partners with MIT to Bring AI Education to Summer School Students

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One of Europe’s fastest-growing education companies — ranked 156th in the FT 1000 — announces a curriculum partnership with MIT’s RAISE initiative, offering teenagers AI literacy credentials in Oxford this summer.

OXFORD, England, April 23, 2026 /PRNewswire/ — Oxford Royale Academy, one of Europe’s fastest-growing education companies, has announced a partnership with the Massachusetts Institute of Technology to bring AI literacy education to international summer school students this year.

 

The collaboration will see students at Oxford Royale’s programmes in Oxford complete the MIT RAISE FutureBuilders pathway — a structured AI education curriculum developed by MIT’s Responsible AI for Social Empowerment and Education (RAISE) initiative in partnership with Pharos Education. Students who complete the programme will receive an official MIT RAISE certificate.

Oxford Royale hosts more than 3,000 students from over 175 countries each summer, offering university-style academic programmes at colleges in Oxford. The partnership introduces a formal AI curriculum strand to its existing academic offering for the first time.

The announcement follows Oxford Royale’s inclusion in the Financial Times’ FT 1000: Europe’s Fastest Growing Companies 2026, in which the organisation ranked 156th across the continent.

IN THEIR WORDS

“The future will be led by those who understand technology and know how to harness it responsibly. Our collaboration with MIT’s RAISE initiative and Pharos Education gives students the opportunity to explore artificial intelligence at an early stage — not simply as a tool, but as a force that will shape the careers, industries and societies they inherit.”

— Andy Palmer, Chief Executive Officer, Oxford Royale Academy

“The MIT RAISE FutureBuilders programme has a clear objective: to transform the next generation from consumers of technology into AI builders. Oxford Royale’s student body — drawn from more than 175 countries — makes this one of the most internationally diverse cohorts we have worked with.”

— Felipe Arango, Chief Executive Officer, Pharos Education

BACKGROUND AND CONTEXT

Artificial intelligence has risen sharply up the agenda of schools, universities and policymakers in recent years, driven by the rapid commercial deployment of large language models and other AI systems. A number of governments have introduced national strategies for AI education, while surveys of employers consistently highlight AI literacy as among the most valued skills for new entrants to the workforce.

Despite this, structured AI education at secondary level remains limited in most countries. Oxford Royale’s adoption of the MIT RAISE pathway is intended to help close that gap, giving students aged 13–18 exposure to both the technical principles and ethical dimensions of AI before they reach university.

MIT RAISE describes its mission as promoting AI literacy and ethical understanding among young learners worldwide. Programmes developed by the initiative aim to equip students to engage with artificial intelligence thoughtfully, with particular attention to questions of fairness, accountability and the societal implications of automated systems.

Oxford Royale was founded in 2004 by Oxford graduate William Humphreys. Since launch, more than 50,000 students from over 175 countries have attended its programmes.

NOTES TO EDITORS

Programme Dates and Availability

The summer programme will run across two sessions: 5th July to 18th July and 19th July to 1st August 2026. There are a total of 60 places available across both sessions.

About Oxford Royale Academy

Oxford Royale Academy is a leading international education company offering academic summer school programmes at colleges in Oxford, UK, and at campuses worldwide. Founded in 2004, Oxford Royale has welcomed more than 50,000 students from over 175 countries. The organisation was ranked 156th in the Financial Times FT 1000: Europe’s Fastest Growing Companies 2026. Further information is available at oxfordroyale.com.

About MIT RAISE

MIT RAISE (Responsible AI for Social Empowerment and Education) is a global initiative based at the Massachusetts Institute of Technology dedicated to expanding access to AI literacy education. Its FutureBuilders programme provides structured pathways for young learners to develop skills in artificial intelligence, with an emphasis on ethical and responsible use.

About Pharos Education

Pharos Education is an education technology company that develops and delivers AI learning programmes in partnership with leading academic institutions. Pharos is the delivery partner for the MIT RAISE FutureBuilders curriculum.

 

SOURCE Oxford Royale

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