Technology

X Financial Reports Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

Published

1 year ago

March 19, 2025

SHENZHEN, China, March 19, 2025 /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 fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter and Fiscal Year 2024 Operational Highlights

Three Months
Ended December
31, 2023

Three Months
Ended September
30, 2024

Three Months
Ended December
31, 2024

Twelve Months
Ended December
31, 2023

Twelve Months
Ended December
31, 2024

QoQ

YoY

Total loan amount facilitated and
originated (RMB in million)

26,134

28,338

32,297

14.0 %

23.6 %

105,557

104,889

(0.6 %)

Number of active borrowers

1,603,760

1,965,248

2,120,068

7.9 %

32.2 %

4,495,997

5,231,887

16.4 %

The total loan amount facilitated and originated[1] in the fourth quarter of 2024 was RMB32,297 million, compared with RMB26,134 million in the same period of 2023.The total loan amount facilitated and originated in 2024 was RMB104,889 million, compared with RMB105,557 million in 2023.The total number of active borrowers[2] was 2,120,068 in the fourth quarter of 2024, compared with 1,603,760 in the same period of 2023.The total number of active borrowers was 5,231,887 in 2024, compared with 4,495,997 in 2023.

As of December 31, 2023

As of September 30, 2024

As of December 31, 2024

Total outstanding loan balance (RMB in million)

48,847

45,766

52,327

Delinquency rates for all outstanding loans that are past
due for 31-60 days

1.57 %

1.02 %

1.17 %

Delinquency rates for all outstanding loans that are past
due for 91-180 days

3.12 %

3.22 %

2.48 %

The total outstanding loan balance[3] as of December 31, 2024 was RMB52,327 million, compared with RMB48,847 million as of December 31, 2023.The delinquency rate for all outstanding loans that are past due for 31-60 days[4] as of December 31, 2024 was 1.17%, compared with 1.57% as of December 31, 2023.The delinquency rate for all outstanding loans that are past due for 91-180 days[5] as of December 31, 2024 was 2.48%, compared with 3.12% as of December 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 excluded in the outstanding loan balance, except for Xiaoying Housing Loans. As Xiaoying Housing Loans 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 Loans delinquent for more than 60 days in the outstanding loan balance.

[4] Represents the balance of the outstanding principal and accrued outstanding interest for Xiaoying Credit Loans that were 31 to 60 days past due as a percentage of the total balance of outstanding principal and accrued outstanding interest for Xiaoying Credit Loans that the Company facilitated and originated as of a specific date. Xiaoying Credit Loans that are delinquent for more than 60 days are excluded when calculating the denominator. Starting from the first quarter of 2021, substantially all of the loans facilitated and originated by the Company have been Xiaoying Credit Loans.

[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 Xiaoying Credit 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 Xiaoying Credit Loans that the Company facilitated and originated as of a specific date. Xiaoying Credit Loans that are delinquent for more than 180 days are excluded when calculating the denominator.

Fourth Quarter 2024 Financial Highlights

(In thousands, except for share and per share
data)

Three Months Ended
December 31, 2023

Three Months Ended
September 30, 2024

Three Months Ended
December 31, 2024

QoQ

YoY

RMB

Total net revenue

1,192,664

1,582,497

1,708,722

8.0 %

43.3 %

Total operating costs and expenses

(938,472)

(1,073,533)

(1,183,510)

10.2 %

26.1 %

Income from operations

254,192

508,964

525,212

3.2 %

106.6 %

Net income

188,968

375,840

385,626

2.6 %

104.1 %

Non-GAAP adjusted net income

230,782

433,625

408,022

(5.9 %)

76.8 %

Net income per ADS—basic

3.90

7.86

8.22

4.6 %

110.8 %

Net income per ADS—diluted

3.84

7.74

8.04

3.9 %

109.4 %

Non-GAAP adjusted net income per ADS—basic

4.74

9.12

8.70

(4.6 %)

83.5 %

Non-GAAP adjusted net income per ADS—diluted

4.68

8.88

8.46

(4.7 %)

80.8 %

Total net revenue in the fourth quarter of 2024 was RMB1,708.7 million (US$234.1 million), representing an increase of 43.3% from RMB1,192.7 million in the same period of 2023.Income from operations in the fourth quarter of 2024 was RMB525.2 million (US$72.0 million), compared with RMB254.2 million in the same period of 2023.Net income in the fourth quarter of 2024 was RMB385.6 million (US$52.8 million), compared with RMB189.0 million in the same period of 2023.Non-GAAP[6] adjusted net income in the fourth quarter of 2024 was RMB408.0 million (US$55.9 million), compared with RMB230.8 million in the same period of 2023.Net income per basic and diluted American depositary share (“ADS”) [7] in the fourth quarter of 2024 was RMB8.22 (US$1.13) and RMB8.04 (US$1.10), compared with RMB3.90 and RMB3.84, respectively, in the same period of 2023.Non-GAAP adjusted net income per basic and diluted ADS in the fourth quarter of 2024 was RMB8.70 (US$1.19) and RMB8.46 (US$1.16), compared with RMB4.74 and RMB4.68, 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, (iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net income (loss) per basic share, and (v) adjusted net income (loss) per diluted share, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments, gain (loss) from financial investments at equity method 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.

Fiscal Year 2024 Financial Highlights

Twelve Months Ended December 31,

(In thousands, except for share and per share
data)

2023

2024

YoY

RMB

Total net revenue

4,814,884

5,871,782

22.0 %

Total operating costs and expenses

(3,352,767)

(3,998,013)

19.2 %

Income from operations

1,462,117

1,873,769

28.2 %

Net income

1,186,794

1,539,906

29.8 %

Non-GAAP adjusted net income

1,276,696

1,538,512

20.5 %

Net income per ADS—basic

24.72

31.98

29.4 %

Net income per ADS—diluted

24.48

31.50

28.7 %

Non-GAAP adjusted net income per ADS—basic

26.58

31.98

20.3 %

Non-GAAP adjusted net income per ADS—diluted

26.34

31.44

19.4 %

Total net revenue in 2024 was RMB5,871.8 million (US$804.4 million), representing an increase of 22.0% from RMB4,814.9 million in 2023.Income from operations in 2024 was RMB1,873.8 million (US$256.7 million), compared with RMB1,462.1 million in 2023.Net income in 2024 was RMB1,539.9 million (US$211.0 million), compared with RMB1,186.8 million in 2023.Non-GAAP adjusted net income in 2024 was RMB1,538.5 million (US$210.8 million), compared with RMB1,276.7 million in 2023.Net income per basic and diluted ADS in 2024 was RMB31.98 (US$4.38) and RMB31.50 (US$4.32), compared with RMB24.72 and RMB24.48, respectively, in 2023.Non-GAAP adjusted net income per basic and adjusted diluted ADS in 2024 was RMB31.98 (US$4.38) and RMB31.44 (US$4.31), compared with RMB26.58 and RMB26.34, respectively, in 2023.

Mr. Kent Li, President of the Company, commented, “We are very pleased to conclude the year with outstanding operational and financial results in the fourth quarter. Total loan volumes exceeded our guidance for both the fourth quarter and the fiscal year. Our relentless efforts to improve asset quality, coupled with a favorable macroeconomic environment, resulted in impressive top and bottom lines growth. In the second half of 2024, the Chinese government implemented a series of monetary and fiscal measures to increase liquidity, stabilize key sectors such as real estate, and stimulate economic growth, which also benefited the personal finance market we serve, including reducing our funding costs. As a result, both our top and bottom lines grew significantly in the fourth quarter and the fiscal year, with net income in the quarter more than doubling year-over-year.”

“Specifically on the operational front, our total loan amount facilitated and originated increased 24% year-over-year to RMB32 billion in the fourth quarter, above the high end of our guidance. Delinquency rates for all outstanding loans past due for 31-60 days and 91-180 days were 1.17% and 2.48%, respectively, at the end of the quarter, compared to 1.57% and 3.12% a year ago. Asset quality continued to improve throughout the year.”

“As we enter into 2025, the Chinese government has signaled a strong commitment to promoting the private sector as a key driver of innovation and sustainable growth. We are optimistic about our business prospects and will capitalize on this growth opportunity amid the favorable market environment to accelerate growth and enhance shareholder returns. For the full year 2025, we expect total loan volumes to increase by approximately 30% compared to last year. For the first quarter, we expect a sequential increase in total loan volumes despite the seasonal impact of the Chinese New Year. So far this quarter, we have witnessed continued improvement in asset quality, highlighting the effectiveness of our ongoing improvements in risk management and control.”

“In addition, we are increasing our investments in AI applications to keep pace with the latest wave of innovation, exemplified by advancements such as DeepSeek. We have seamlessly implemented AI applications in many aspects of our business. For example, in customer service, we have developed a new generation of customer service robots based on the latest generative AI technology. We have also enabled intelligent customer service agent assistance by leveraging AI models such as Alibaba’s Tongyi Qianwen and ByteDance’s Doubao, including features like knowledge-based recommendations and real-time conversation quality inspection. In addition, we have transitioned from manual to AI-powered content review for promotional videos. We have also used AI to effectively improve coding efficiency and carry out system optimization. Furthermore, our multimodal AI risk management system, which achieves over 95% accuracy in contextual environment analysis through advanced pattern recognition, increases the accuracy and efficiency of our risk control system. Going forward, we will continue to use AI to further strengthen our technological capabilities, optimize operational efficiency, and enhance service quality.”

Mr. Frank Fuya Zheng, Chief Financial Officer of the Company, added, “We are pleased to report strong financial results for the fourth quarter. Total net revenue increased by 43% year-over-year to RMB1.7 billion, while net income grew by 104% year-over-year to about RMB386 million. Throughout the year, our top and bottom lines continued to expand quarter-over-quarter, bringing total net revenue and net income for the full year to record highs of RMB5.9 billion and RMB1.5 billion, respectively.”

“Our balance sheet remains robust, with total shareholders’ equity at year-end increasing 19% over the prior year, a testament to our solid and healthy financial position and disciplined capital management. Building on this strong foundation, we allocated US$76 million to share repurchases and dividends in 2024, including US$16.5 million in cash dividends, US$9.2 million for the tender offer, US$50.3 million for the share repurchase plans. These initiatives underscore our commitment to delivering value to shareholders while maintaining financial flexibility to support future growth. In 2025, we will continue to focus on shareholder returns through share repurchases and dividends while executing our proven strategy to drive long-term growth and value creation.”

Fourth Quarter 2024 Financial Results

Total net revenue in the fourth quarter of 2024 increased by 43.3% to RMB1,708.7 million (US$234.1 million) from RMB1,192.7 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 below.

Three Months Ended December 31,

(In thousands, except for share and per share data)

2023

2024

YoY

RMB

% of Revenue

RMB

% of Revenue

Loan facilitation service

615,482

51.6 %

877,664

51.4 %

42.6 %

Post-origination service

166,807

14.0 %

266,018

15.6 %

59.5 %

Financing income

307,692

25.8 %

350,599

20.4 %

13.9 %

Guarantee income

16,576

1.4 %

69,649

4.1 %

320.2 %

Other revenue

86,107

7.2 %

144,792

8.5 %

68.2 %

Total net revenue

1,192,664

100.0 %

1,708,722

100.0 %

43.3 %

Loan facilitation service fees in the fourth quarter of 2024 increased by 42.6% to RMB877.7 million (US$120.2 million) from RMB615.5 million in the same period of 2023, primarily due to an increase in the total loan amount facilitated this quarter compared with the same period of 2023.

Post-origination service fees in the fourth quarter of 2024 increased by 59.5% to RMB266.0 million (US$36.4 million) from RMB166.8 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 fourth quarter of 2024 increased by 13.9% to RMB350.6 million (US$48.0 million) from RMB307.7 million in the same period of 2023, primarily due to an increase in average loan balances held by the Company compared with the same period of 2023.

Guarantee income in the fourth quarter of 2024 was RMB69.6 million (US$9.5 million), compared with RMB16.6 million in the same period of 2023, due to the cumulative effect of increased volume of loans facilitated covered by guarantee service in the previous quarters compared with the same period of 2023. Revenues from guarantee service are recognized systematically when the Company released from the underlying risk.

Other revenue in the fourth quarter of 2024 increased by 68.2% to RMB144.8 million (US$19.8 million), compared with RMB86.1 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 fourth quarter of 2024 increased by 4.3% to RMB439.0 million (US$60.1 million) from RMB421.0 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 originated in the previous quarters compared with the same period of 2023.

Borrower acquisitions and marketing expenses in the fourth quarter of 2024 increased by 45.2% to RMB503.7 million (US$69.0 million) from RMB347.0 million in the same period of 2023, primarily due to intensified efforts in borrower acquisitions compared with the same period of 2023.

Provision for loans receivable in the fourth quarter of 2024 was RMB64.3 million (US$8.8 million), compared with RMB99.4 million in the same period of 2023, primarily due to a decrease in the average estimated default rate compared with the same period of 2023, and partially offset by an increase in loans receivable held by the Company as a result of the cumulative effect of increased volume of loans facilitated and originated in the previous quarters compared with the same period of 2023.

Provision for contingent guarantee liabilities in the fourth quarter of 2024 was RMB116.1 million (US$15.9 million), compared with RMB25.9 million in the same period of 2023, primarily due to an increase in guarantee liabilities held by the Company as a result of the increased volume of loans facilitated covered by the guarantee service this quarter compared with the same period of 2023.

Income from operations in the fourth quarter of 2024 was RMB525.2 million (US$72.0 million), compared with RMB254.2 million in the same period of 2023.

Income before income taxes in the fourth quarter of 2024 was RMB540.8 million (US$74.1 million), compared with RMB261.7 million in the same period of 2023.

Income tax expense in the fourth quarter of 2024 was RMB150.8 million (US$20.7 million), compared with RMB47.4 million in the same period of 2023.

Net income in the fourth quarter of 2024 was RMB385.6 million (US$52.8 million), compared with RMB189.0 million in the same period of 2023.

Non-GAAP adjusted net income in the fourth quarter of 2024 was RMB408.0 million (US$55.9 million), compared with RMB230.8 million in the same period of 2023.

Net income per basic and diluted ADS in the fourth quarter of 2024 was RMB8.22 (US$1.13), and RMB8.04 (US$1.10), compared with RMB3.90 and RMB3.84, respectively, in the same period of 2023.

Non-GAAP adjusted net income per basic and diluted ADS in the fourth quarter of 2024 was RMB8.70 (US$1.19), and RMB8.46 (US$1.16), compared with RMB4.74 and RMB4.68 respectively, in the same period of 2023.

Cash and cash equivalents was RMB984.6 million (US$134.9 million) as of December 31, 2024, compared with RMB1,044.1 million as of September 30, 2024.

Fiscal Year 2024 Financial Results

Total net revenue in 2024 increased by 22.0% to RMB5,871.8 million (US$804.4 million) from RM4,814.9 million in 2023, primarily due to growth in various disaggregated revenue compared with 2023. Please refer to analysis of disaggregation of revenue below.

Twelve Months Ended December 31,

(In thousands, except for share and per share data)

2023

2024

YoY

RMB

% of Revenue

RMB

% of Revenue

Loan facilitation service

2,740,974

56.9 %

3,102,345

52.8 %

13.2 %

Post-origination service

596,582

12.4 %

759,539

12.9 %

27.3 %

Financing income

1,137,336

23.6 %

1,372,004

23.5 %

20.6 %

Guarantee income

24,498

0.5 %

201,716

3.4 %

723.4 %

Other revenue

315,494

6.6 %

436,178

7.4 %

38.3 %

Total net revenue

4,814,884

100.0 %

5,871,782

100.0 %

22.0 %

Loan facilitation service fees in 2024 increased by 13.2% to RMB3,102.3 million (US$425.0 million) from RMB2,741.0 million in 2023, primarily due to a decrease in the expected prepayment rates this year compared with 2023.

Post-origination service fees in 2024 increased by 27.3% to RMB759.5 million (US$104.1 million) from RMB596.6 million in 2023, primarily due to the cumulative effect of increased volume of loans facilitated in the previous years. 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 2024 increased by 20.6% to RMB1,372.0 million (US$188.0 million) from RMB1,137.3 million in 2023, primarily due to an increase in average loan balances held by the Company compared with 2023.

Guarantee income in 2024 was RMB201.7 million (US$27.6 million), compared with RMB24.5 million in 2023, due to the cumulative effect of increased volume of loans facilitated covered by guarantee service compared with 2023. Revenues from guarantee service are recognized systematically when the Company released from the underlying risk.

Other revenue in 2024 increased by 38.3% to RMB436.2 million (US$59.8 million), compared with RMB315.5 million in 2023, primarily due to an increase in referral service fee for introducing borrowers to other platforms.

Origination and servicing expenses in 2024 increased by 12.6% to RMB1,738.1 million (US$238.1 million) from RMB1,544.0 million in 2023, primarily due to the increase in collection expenses resulting from the cumulative effect of increased volume of loans facilitated and originated in the previous quarters compared with 2023.

Borrower acquisitions and marketing expenses in 2024 increased by 15.4% to RMB1,582.5 million (US$216.8 million) from RMB1,370.9 million in 2023, primarily due to intensified efforts in borrower acquisitions compared with 2023.

Provision for loans receivable in 2024 was RMB221.7 million (US$30.4 million), compared with RMB229.1 million in 2023.

Provision for contingent guarantee liabilities in 2024 was RMB241.7 million (US$33.1 million), compared with RMB67.5 million in 2023, primarily due to an increase in guarantee liabilities held by the Company as a result of the increased volume of loans facilitated covered by the guarantee service this year compared with 2023.

Income from operations in 2024 was RMB1,873.8 million (US$256.7 million), compared with RMB1,462.1 million in 2023.

Income before income taxes in 2024 was RMB1,894.3 million (US$259.5 million), compared with RMB1,468.6 million in 2023.

Income tax expense in 2024 was RMB405.7 million (US$55.6 million), compared with RMB261.1 million in 2023.

Net income in 2024 was RMB1,539.9 million (US$211.0 million), compared with RMB1,186.8 million in 2023.

Non-GAAP adjusted net income in 2024 was RMB1,538.5 million (US$210.8 million), compared with RMB1,276.7 million in 2023.

Net income per basic and diluted ADS in 2024 was RMB31.98 (US$4.38), and RMB31.50 (US$4.32), compared with RMB24.72 and RMB24.48, respectively, in 2023.

Non-GAAP adjusted net income per basic and diluted ADS in 2024 was RMB31.98 (US$4.38), and RMB31.44 (US$4.31), compared with RMB26.58 and RMB26.34 respectively, in 2023.

Cash and cash equivalents was RMB984.6 million (US$134.9 million) as of December 31, 2024, compared with RMB1,195.4 million as of December 31, 2023.

Recent Development

Share Repurchase Plan

In the fourth quarter of 2024, the Company repurchased an aggregate of approximately 38.4 million Class A ordinary shares represented by 6.4 million ADSs for a total consideration of approximately US$49.0 million. Throughout 2024, the Company repurchased an aggregate of approximately 52.2 million Class A ordinary shares, of which about 50.5 million Class A ordinary shares were in the forms of ADSs, with a total consideration of approximately US$59.5 million. As of the date of this announcement, the Company’s previous US$30 million and US$20 million repurchase plans have been fully utilized. The Company has approximately US$15.9 million remaining for repurchases under its US$50 million share repurchase plan, which is effective through June 30, 2026.

Declaration of Semi-Annual Dividend

Pursuant to the semi-annual dividend policy, the Board today approved the declaration and payment of a semi-annual dividend of US$0.25 per ADS (approximately US$0.042 per ordinary share). The holders of the Company’s ordinary shares shown on the Company’s record at the close of trading on June 20, 2025 (U.S. Eastern Daylight Time) will be entitled to the semi-annual dividend. These shareholders, including the Bank of New York Mellon, the depositary of our ADS program (the “Depositary”), will receive the payments of dividends on or about July 2, 2025. Dividends to the Company’s ADS holders will be paid by the Depositary on or after July 2, 2025, and the precise timing of receipt will vary based on the processing efficiency of the respective holding brokerage.

Business Outlook

The Company expects the total loan amount facilitated and originated for the first quarter of 2025 to be between RMB33.5 billion and RMB34.5 billion. The total loan amount facilitated and originated for 2025 is expected to be between RMB134.4 billion and RMB138.4 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 March 20, 2025 (7:00 PM Beijing / Hong Kong Time on March 20, 2025).

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 March 27, 2025:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

2479997

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, (iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net income (loss) per basic share, and (v) adjusted net income (loss) per diluted share, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments, gain (loss) from financial investments at equity method 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 “Unaudited 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 RMB 7.2993 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 December 31, 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 cause 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 differ 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 December 31, 2024

RMB

USD

ASSETS

Cash and cash equivalents

1,195,352

984,611

134,891

Restricted cash, net

749,070

676,793

92,720

Accounts receivable and contract assets, net

1,659,588

2,029,550

278,047

Loans receivable from Credit Loans and other loans, net

4,947,833

4,828,317

661,477

Deposits to institutional cooperators, net

1,702,472

1,958,297

268,286

Prepaid expenses and other current assets, net

48,767

34,079

4,667

Financial guarantee derivative

–

1,038

142

Deferred tax assets, net

135,958

197,713

27,087

Long term investments

493,411

498,038

68,231

Property and equipment, net

8,642

15,833

2,169

Intangible assets, net

36,810

36,592

5,013

Loan receivable from Housing Loans, net

8,657

–

Financial investments

608,198

513,476

70,346

Other non-current assets

55,265

44,951

6,158

TOTAL ASSETS

11,650,023

11,819,288

1,619,234

LIABILITIES

Payable to investors and institutional funding partners at amortized cost

3,584,041

2,184,086

299,218

Guarantee liabilities

61,907

187,641

25,707

Deferred guarantee income

46,597

164,725

22,567

Short-term borrowings

565,000

328,500

45,004

Accrued payroll and welfare

86,771

94,717

12,976

Other tax payable

289,819

279,993

38,358

Income tax payable

446,500

591,491

81,034

Accrued expenses and other current liabilities

595,427

941,506

128,986

Dividend payable

59,226

–

Other non-current liabilities

37,571

27,516

3,770

Deferred tax liabilities

30,040

65,959

9,036

TOTAL LIABILITIES

5,802,899

4,866,134

666,656

Commitments and Contingencies

Equity:

Common shares

207

Treasury stock

(111,520)

(509,644)

(69,821)

Additional paid-in capital

3,196,942

3,207,028

439,361

Retained earnings

2,692,018

4,174,511

571,906

Other comprehensive income

69,477

81,052

11,104

Total X Financial shareholders’ equity

5,847,124

6,953,154

952,578

Non-controlling interests

–

TOTAL EQUITY

5,847,124

6,953,154

952,578

TOTAL LIABILITIES AND EQUITY

11,650,023

11,819,288

1,619,234

X Financial

Unaudited Condensed Consolidated Statements of Comprehensive Income

Three Months Ended December 31,

Twelve Months Ended December 31,

(In thousands, except for share and per share data)

2023

2024

2023

2024

RMB

USD

RMB

USD

Net revenues

Loan facilitation service

615,482

877,664

120,239

2,740,974

3,102,345

425,020

Post-origination service

166,807

266,018

36,444

596,582

759,539

104,056

Financing income

307,692

350,599

48,032

1,137,336

1,372,004

187,964

Guarantee income

16,576

69,649

9,542

24,498

201,716

27,635

Other revenue

86,107

144,792

19,836

315,494

436,178

59,756

Total net revenue

1,192,664

1,708,722

234,093

4,814,884

5,871,782

804,431

Operating costs and expenses:

Origination and servicing1

420,987

438,975

60,139

1,544,014

1,738,139

238,124

Borrower acquisitions and marketing1

346,994

503,704

69,007

1,370,942

1,582,472

216,798

General and administrative1

39,110

48,886

6,697

153,943

175,934

24,103

Provision for accounts receivable and contract assets

6,250

13,262

1,817

12,234

35,732

4,895

Provision for loans receivable

99,365

64,289

8,808

229,137

221,658

30,367

Provision for contingent guarantee liabilities

25,926

116,103

15,906

67,520

241,738

33,118

Change in fair value of financial guarantee derivative2

–

(1,038)

(142)

(24,966)

(1,038)

(142)

Fair value adjustments related to Consolidated Trusts2

–

531

–

(Reversal of) provision for credit losses for deposits and other financial assets

(160)

(671)

(92)

(588)

3,378

463

Total operating costs and expenses

938,472

1,183,510

162,140

3,352,767

3,998,013

547,726

Income from operations

254,192

525,212

71,953

1,462,117

1,873,769

256,705

Interest income (expenses), net

(2,587)

4,338

594

(20,365)

(560)

(77)

Foreign exchange (gain) loss

3,232

(6,183)

(847)

(4,023)

(9,533)

(1,306)

Income from financial investments3

5,480

13,396

1,835

6,498

17,134

2,347

Other income, net

1,346

4,084

560

24,351

13,521

1,852

Income before income taxes

261,663

540,847

74,095

1,468,578

1,894,331

259,521

Income tax expense

(47,351)

(150,778)

(20,657)

(261,130)

(405,702)

(55,581)

Gain (loss) from equity in affiliates, net of tax

(21,550)

4,587

628

(1,931)

10,159

1,392

Gain (loss) from financial investments at equity method, net of tax3

(3,794)

(9,030)

(1,237)

(18,723)

41,118

5,633

Net income

188,968

385,626

52,829

1,186,794

1,539,906

210,965

Less: net income attributable to non-controlling interests

–

Net income attributable to X Financial shareholders

188,968

385,626

52,829

1,186,794

1,539,906

210,965

Net income

188,968

385,626

52,829

1,186,794

1,539,906

210,965

Other comprehensive income, net of tax of nil:

Gain (loss) from equity in affiliates

(52)

105

(7)

(314)

(43)

Income (loss) from financial investments

475

(5,807)

(796)

475

293

Foreign currency translation adjustments

(8,214)

19,186

2,628

5,410

11,596

1,589

Comprehensive income

181,177

399,110

54,675

1,192,672

1,551,481

212,551

Less: comprehensive income attributable to non-controlling interests

–

Comprehensive income attributable to X Financial shareholders

181,177

399,110

54,676

1,192,672

1,551,481

212,551

Net income per share—basic

0.65

1.37

0.19

4.12

5.33

0.73

Net income per share—diluted

0.64

1.34

0.18

4.08

5.25

0.72

Net income per ADS—basic

3.90

8.22

1.13

24.72

31.98

4.38

Net income per ADS—diluted

3.84

8.04

1.10

24.48

31.50

4.32

Weighted average number of ordinary shares outstanding—basic

291,312,698

281,823,659

288,115,969

288,828,371

Weighted average number of ordinary shares outstanding—diluted

294,631,195

288,542,180

290,833,214

293,354,671

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 theses 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 December 31, 2023

Changes

before re-grouping

after re-grouping

RMB

Origination and servicing

755,238

420,987

(334,251)

Borrower acquisitions and marketing expenses

–

346,994

Sales and marketing

3,711

–

(3,711)

General and administrative

48,142

39,110

(9,032)

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.

3 The Company has revised the presentation of the gain (loss) from financial investments at equity method after income tax expense, which previously reported as “Income (loss) from financial investments” before income tax expense. Additionally,
“Impairment losses on long-term investments” accounted under the equity method have been reclassified into the gain (loss) from equity in affiliates after income tax expense. This change in presentation does not affect the net income for any
periods presented.

X Financial

Unaudited Reconciliations of GAAP and Non-GAAP Results

Three Months Ended December 31,

Twelve Months Ended December 31,

(In thousands, except for share and per share data)

2023

2024

2023

2024

RMB

USD

RMB

USD

GAAP net income

188,968

385,626

52,829

1,186,794

1,539,906

210,965

Less: Income (loss) from financial investments (net of tax of nil)

5,480

13,396

1,835

6,498

17,134

2,347

Less: Impairment losses on financial investments (net of tax of nil)

–

Less: Impairment losses on long-term investments (net of tax)

(35,079)

(16,680)

(2,285)

(35,079)

(16,680)

(2,285)

Less: Gain (loss) from financial investments at equity method (net of tax of nil)

(3,794)

(9,030)

(1,237)

(18,723)

41,118

5,633

Add: Share-based compensation expenses (net of tax of nil)

8,421

10,082

1,381

42,598

40,178

5,504

Non-GAAP adjusted net income

230,782

408,022

55,897

1,276,696

1,538,512

210,774

Non-GAAP adjusted net income per share—basic

0.79

1.45

0.20

4.43

5.33

0.73

Non-GAAP adjusted net income per share—diluted

0.78

1.41

0.19

4.39

5.24

0.72

Non-GAAP adjusted net income per ADS—basic

4.74

8.70

1.19

26.58

31.98

4.38

Non-GAAP adjusted net income per ADS—diluted

4.68

8.46

1.16

26.34

31.44

4.31

Weighted average number of ordinary shares outstanding—basic

291,312,698

281,823,659

288,115,969

288,828,371

Weighted average number of ordinary shares outstanding—diluted

294,631,195

288,542,180

290,833,214

293,354,671

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SOURCE X Financial

Technology

Walmart Has 23.6% of U.S. Grocery Sales – But Costco Owns the AI Answer – 5W Grocery Retail AI Visibility Index 2026

Published

2 hours ago

May 7, 2026

Walmart Owns 21% of U.S. Grocery — But Costco Owns the AI Answer

NEW YORK, May 7, 2026 /PRNewswire/ — 5WPR, the premier AI communications firm in the United States, today released the U.S. Grocery Retail AI Visibility Index 2026 — the 11th installment in 5W’s AI Visibility Index research series, and the first to rank American grocery retailers by how frequently they are cited inside AI-generated answers.

The headline finding rewrites the category league table.

Walmart, with approximately 21 percent of U.S. grocery market share — the largest in the country — ranks fourth in AI citation share. The retailer cited most often when American shoppers ask ChatGPT, Claude, Perplexity, or Google AI Overviews where to buy their groceries is Costco. Trader Joe’s ranks second. Whole Foods ranks third. Aldi, H-E-B, and Wegmans are all punching far above what their physical footprint would predict.

“Market share is a lagging indicator. AI citation share is a leading indicator,” said Ronn Torossian, Founder and Chairman of 5W. “The grocers who close that gap in 2026 will define the category in 2030. Most grocery CMOs we talk to are running 2019 playbooks against 2026 consumer behavior.”

5W researchers ran more than 80 consumer-intent queries across 12 sub-categories — best overall grocery store, cheapest, highest-quality produce, best private label, best organic, best meal planning, best bulk, best delivery, best customer service, best regional, and others — across the four leading consumer AI platforms. Each retailer was scored on citation frequency, position within the answer, sentiment, and sub-category dominance.

The top 10: Costco, Trader Joe’s, Whole Foods, Walmart, Kroger, Aldi, H-E-B, Publix, Wegmans, and Target.

Key structural findings:

Market share no longer predicts AI citation share. Walmart’s roughly 21 percent share translates to an estimated 8 to 10 percent AI citation share across premium query categories. The decoupling is the single largest such gap in American retail.Private label is the highest-leverage citation asset a grocer owns. Kirkland, Trader Joe’s, 365, Good & Gather, and Great Value are cited directly by name in AI answers at rates that exceed most national CPG brands.Regional loyalty translates directly into regional AI dominance. Regional chains outperform national chains in their home markets by 3x or more.Reddit and TikTok are under-priced citation surfaces. Perplexity pulls a majority of its answers from community sources. ChatGPT and Claude weight Reddit heavily.

The report also identifies six 2026 dynamics reshaping the category, including the new GLP-1 grocery basket, Aldi’s expansion as a citation-compounding program, and Walmart’s CEO transition from Doug McMillon to John Furner — effective February 1, 2026 — as a brand-narrative inflection point.

The full Index, including ranks 11 through 25 and sub-category breakdowns, is available as a free download at 5wpr.com/research.

About 5W

5W is the AI Communications Firm, building brand authority across the platforms where decisions now happen — ChatGPT, Claude, Perplexity, Gemini, and Google AI Overviews — alongside earned media, digital, and influencer channels. 5W combines public relations, digital marketing, Generative Engine Optimization (GEO), and proprietary AI visibility research, helping clients measure and grow their presence in AI-driven buyer research.

Founded more than 20 years ago, 5W has been recognized as a top U.S. PR agency by O’Dwyer’s, named Agency of the Year in the American Business Awards®, and honored as a Top Place to Work in Communications in 2026 by Ragan. 5W serves clients across B2C sectors including Beauty & Fashion, Consumer Brands, Entertainment, Food & Beverage, Health & Wellness, Travel & Hospitality, Technology, and Nonprofit; B2B specialties including Corporate Communications and Reputation Management; as well as Public Affairs, Crisis Communications, and Digital Marketing, including Social Media, Influencer, Paid Media, GEO, and SEO. 5W was also named to the Digiday WorkLife Employer of the Year list.

For more information, visit www.5wpr.com.

Media Contact
Chris Bergin
cbergin@5wpr.com

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SOURCE 5W Public Relations

Technology

ICAT Logistics Appoints Youssef Annali as Chief Financial Officer

Published

2 hours ago

May 7, 2026

Transportation and logistics finance leader joins as ICAT accelerates its next phase of growth

DALLAS, May 7, 2026 /PRNewswire/ — ICAT Logistics announces the appointment of Youssef Annali as Chief Financial Officer. Annali brings more than two decades of senior finance leadership across global logistics and supply chain businesses, and joins as the company scales its platform, team, and operational capabilities globally.

Annali joins ICAT from OIA Global, a $1.4 billion revenue supply chain management leader, where he served as CFO for four years overseeing Finance, Corporate Development, Strategy, Legal, Compliance, and Real Estate. Prior to OIA, he spent eleven years at CEVA Logistics—one of the world’s largest freight and logistics providers—rising to CFO & EVP Finance for North America, where he held financial accountability for a business generating over $4.5 billion in annual revenue and more than 14,000 employees. Earlier in his career, he served in senior finance roles at Abbott, KPMG, and PricewaterhouseCoopers.

Annali has a consistent track record of building finance functions that support strategic growth and has deep experience across financial planning, M&A, treasury, and corporate restructuring. He holds a Post-Master’s in Finance and Control from the University of Amsterdam and a Master’s in Business Administration from the University of Groningen.

“Youssef has led high-performing finance teams at the highest levels of global logistics. He brings the operational depth and strategic mindset our platform demands as we enter the next phase of growth,” said Brad Stogner, CEO of ICAT Logistics.

“ICAT has built something genuinely differentiated—a specialized platform operating in verticals where precision and domain expertise are non-negotiable. The foundation is strong, and the opportunity ahead is significant. I look forward to working with the team to accelerate that momentum,” said Youssef Annali, Chief Financial Officer of ICAT Logistics.

About ICAT

ICAT is the world’s leading specialized logistics company, delivering customized solutions and deep vertical expertise to industries where failure is not an option. With 65 offices and operating capabilities in 190 countries, ICAT serves customers across Live Events, Luxury, Technology, Defense & Aerospace, Life Sciences, and Financial Institutions—sectors defined by uncompromising performance standards. ICAT’s proprietary, AI-powered technology platform provides end-to-end visibility and predictive intelligence, enabling precise execution for the most demanding operations.

ICAT is backed by New Atlas Capital following its acquisition of the Company in 2024.

Contact Information

ICAT Logistics, Inc.
8840 Cypress Waters Blvd, Ste 325,
Coppell, TX, 75019
marketing@icatlogistics.com

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SOURCE ICAT Logistics, Inc.

Technology

HelloNation Article Highlights Poughkeepsie’s Focus on Youth Investment, Neighborhood Parks and Sustainable Reuse

Published

2 hours ago

May 7, 2026

The article examines how redevelopment projects and youth programs are reshaping community life across Poughkeepsie.

POUGHKEEPSIE, N.Y., May 7, 2026 /PRNewswire/ — What does long term community growth look like when a city invests in both people and public spaces? HelloNation has published a HelloNation article that provides the answer through a detailed look at how Poughkeepsie is combining youth investment, neighborhood improvements and adaptive reuse projects to support residents and strengthen the city’s future.

The article explains that Poughkeepsie is undergoing a period of reinvention centered on infrastructure upgrades, youth programming and redevelopment along the city’s Northside. According to the article, local and county leaders are working to create spaces where residents can learn, gather and build stronger community connections. The article notes that these efforts are intended to improve quality of life while helping the city grow in a more sustainable and inclusive way.

A major focus of the article is the planned Youth Opportunity Union, also known as the YOU, a large multipurpose youth facility backed by Dutchess County. The HelloNation article describes the project as a 19,000 square foot center that will include childcare services, wellness support, tutoring areas, teaching kitchens and both indoor and outdoor recreation spaces. The article explains that the project reflects a larger regional effort to increase opportunities for children and teenagers in underserved communities.

The article also highlights additional youth centered investments connected to sports, education and recreation. According to the article, Dutchess County has awarded grants to local organizations serving young people between the ages of 6 and 17. The article further explains that Poughkeepsie’s City Parks program has introduced mini grants designed to support renovations and activities in neighborhood parks, including Pershing Avenue and Malcolm X parks.

Beyond youth programs, the article details how the city is working to improve transportation and neighborhood infrastructure. The HelloNation article explains that Poughkeepsie launched its first five year paving plan in 2025, beginning with major roadway improvements on Main Street and other corridors. The article states that these upgrades are intended to improve safety, durability and daily conditions for residents while supporting broader redevelopment goals throughout the city.

Another important part of the article focuses on adaptive reuse and environmental redevelopment on the Northside. The article describes how Scenic Hudson plans to transform the former Standard Gage Factory into the Northside Hub, a redevelopment project designed to serve as both a nonprofit headquarters and a community gathering space. According to the article, the project will feature solar powered operations, office space, public parkland and community facilities near the Walkway Over the Hudson and Dutchess Rail Trail.

The article also explains that Poughkeepsie’s selection as the Mid Hudson winner in New York’s Downtown Revitalization Initiative adds additional momentum to current redevelopment efforts. The HelloNation article notes that the funding will support new downtown projects that build on existing investments in youth programs, infrastructure and adaptive reuse. Together, these efforts are presented as part of a broader strategy to create long term stability and opportunity for local residents.

The article concludes that Poughkeepsie’s emerging identity is closely tied to projects that strengthen neighborhoods while supporting future generations. Poughkeepsie Puts Youth, Neighborhood Parks and Sustainable Reuse at the Center of Renewal features insights from HelloNation Staff Writer, community development coverage of Poughkeepsie, New York, in HelloNation.

About HelloNation

HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused digital publications and innovative “edvertising” approach, HelloNation delivers expert-driven, good-news content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities. HelloNation maintains partnerships with the U.S. Conference of Mayors, and the United States First Responders Association.

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SOURCE HelloNation