A leading online personal finance company in China, X Financial (NYSE: XYF) (the "Company" or "we"), today announced its unaudited third quarter financial results for the three months ended September 30, 2023.
Operational Highlights for the Third Quarter of 2023
Highlights of the third quarter of 2023 in terms of financial performance
I am Mr.. In a statement to the press, Justin Tang, the Founder, Chief Executive Officer, and Chairman of the Company, stated, "We are pleased to see that our established strategy continues to deliver strong results in the third quarter of this year.". There was a substantial improvement on both our top line as well as our bottom line from last year, as we reached the high end of our previous guidance in terms of loan facilitation and origination amount. As macroeconomic conditions moderately improved and the regulatory environment stabilized during the quarter, the personal finance industry saw a return to normal across the board, leading to an increase in competition across the board.. Thus, we have seen an increase in our unit borrower acquisition costs on a quarter-over-quarter basis. We experienced fluctuations in our loan delinquencies within the historical range of low-to-middle levels. In order to succeed in the future, we will continue to execute on our proven strategy and enhance our ability to drive long-term growth and returns for our shareholders through our proven strategy
In order to succeed in the future, we will continue to execute on our proven strategy and enhance our ability to drive long-term growth and returns for our shareholders through our proven strategy
I am Mr.. According to Kent Li, the company's President, at the end of September 2023, the total amount of loans facilitated and originated increased by 49% year over year and 14% quarter over quarter to RMB29 billion. By the end of September 2023, the total outstanding loan balance will reach nearly RMB50 billion.. The delinquency rate on all outstanding loans past due for 31-60 days and 91-180 days was 1% for the 31-60 days and 91-180 days respectively.A total of 11% and 22%.At the end of the quarter, the percentages were 50% and 50%, respectively, compared with zero at the beginning.There is a 77% and 22% ratio.A year ago, the figures were 22% and 22%, respectively. Our efforts have been intensified to acquire more quality borrowers, but we expect the delinquency rates to continue to fluctuate for some time to come since we have increased our efforts. Using our cutting-edge risk management system, we will maintain healthy asset quality, focusing more on the quality of the assets than on expanding the borrower base and leveraging our cutting-edge risk management system
Using our cutting-edge risk management system, we will maintain healthy asset quality, focusing more on the quality of the assets than on expanding the borrower base and leveraging our cutting-edge risk management system
I am Mr.. According to Frank Fuya Zheng, Chief Financial Officer of the Company, "We are very pleased with our solid financial performance in the third quarter and are looking forward to the fourth quarter".. The company's total net revenue increased by 56% year-over-year and by 140% year-over-year.To RMB1,397 million, an increase of 5% quarter-over-quarter. As a result of the remarkable 64% increase in our net income year-over-year to RMB347 million in the past quarter, there has been a slight decline quarter-over-quarter.. It is believed that the decrease in the number of borrowers was mostly due to the rising costs of acquiring borrowers and managing the risks associated with asset quality. As a company, we remain committed to achieving balanced growth in revenues and earnings over the long term, which is clearly a key driver of shareholder value over the long term. This will be achieved by taking into consideration all aspects of borrower acquisition costs and risk control based on close monitoring of market dynamics, to ensure that we are able to grow our revenue scale as well as our profits in order to be able to achieve this goal.
This will be achieved by taking into consideration all aspects of borrower acquisition costs and risk control based on close monitoring of market dynamics, to ensure that we are able to grow our revenue scale as well as our profits in order to be able to achieve this goal.
Financial Results for the Third Quarter of 2023
There was a 56.1% increase in total net revenue in the third quarter of 2023, from RMB894.6 million in the same period in 2022, to RMB1,396.9 million in the third quarter of 2023. This was primarily due to an increase in the total amount of loans that were facilitated and originated in the third quarter of 2023 as compared to the same period in 2022.
From RMB502.0 million in the third quarter of 2022 to RMB829.4 million (US$113.7 million) in the third quarter of 2023, the loan facilitation service fees grew by 65.2% to RMB829.4 million (US$113.7 million) primarily due to an increase in the total loan amount facilitated this quarter when compared with the same period in 2022.
In the third quarter of 2023, post-origination service fees increased by 75.1% to RMB168.2 million (US$23.1 million) as compared with RMB96.0 million in the same period of 2022, primarily due to an increase in the volume of loans facilitated in the previous quarters having a cumulative effect. In order to recognize revenue from post-origination services over the term of the underlying loans, the services are provided on a straight-line basis.
It is worth mentioning that financing income in the third quarter of 2023 increased by 19.6% to RMB301.0 million (US$41.2 million) from RMB251.6 million in the same period of 2022, primarily as a result of an increase in average loan balances compared with the same period of 2022.
The other revenue for the third quarter of 2023 increased by 118.5% to RMB98.3 million (US$13.5 million), compared with RMB45.0 million in the same period of 2022, mainly because of an increase in the referral service fee for introducing borrowers to other platforms.
It is estimated that origination and servicing expenses increased by 50.1% in the third quarter of 2023 to RMB811.1 million (US$111.2 million) from RMB540.5 million in the same period of 2022, mainly due to an increase in borrower acquisition costs and collection expenses resulting from the increased amount of loans facilitated and originated this quarter compared to the same period of 2022.
It was estimated that the provision for loans receivable during the third quarter of 2023 was RMB53.9 million (US$7.4 million), compared to RMB17.2 million in the same period of 2022. This is primarily due to the increase in loans receivable held by the Company as a result of the increase in total loan amount facilitated and originated by the Company this quarter as compared to the same period of 2022.
As of the third quarter of 2023, the company's profit from operations stood at RMB434.7 million (US$59.6 million), compared with RMB300.4 million in the same period of 2022.
In the third quarter of 2023, the company's income before income taxes and gains (losses) from equity in affiliates totaled RMB417.5 million (US$57.2 million), compared to RMB302.9 million in the same period of 2022.
During the third quarter of 2023, the income tax expense was RMB74.2 million (US$10.2 million), compared with RMB91.1 million in the same period in 2022.
The company's net income in the third quarter of 2023 was RMB347.2 million (US$47.6 million). In the same period of 2022, it was RMB211.7 million.
The company's non-GAAP adjusted net income for the third quarter of 2023 was RMB374.5 million (US$51.3 million), compared with RMB231.1 million for the same period in 2022.
The net income per basic and diluted ADS in the third quarter of 2023 was RMB7.26 (US$1.00), and RMB7.02 (US$0.96), respectively, as compared to RMB3.96 and RMB3.84, respectively, in the same period in 2022.
A non-GAAP adjusted net income per basic and diluted ADS in the third quarter of 2023 was RMB7.80 (US$1.07), and RMB7.56 (US$1.04), respectively, when compared with RMB4.32 and RMB4.20 in the same period of 2022.
As of September 30, 2023, the amount of cash and cash equivalents was RMB1,427.9 million (US$195.7 million), which was an increase from RMB1,320.4 million as of June 30, 2023.
Developments in the recent past
Repurchase Plan for Shares
An aggregate of 395,962 ADSs were repurchased by the Company in the third quarter of 2023 for a total cost of US$1.73 million, which represents the company's third quarterly repurchase. According to the Company's current plan, it has approximately US$5.6 million remaining for potential repurchases after having repurchased 801,807 ADSs for a total consideration of US$3.31 million since the beginning of 2023.
A change in the board of directors and the management of the company
As of the date of this announcement, the Board of Directors (the "Board") has approved the following changes to the Board and management of the company:
Shaoyong (Simon) Cheng has resigned as Vice Chairman of the Board, while remaining on the Board as a Non-Executive Director. Kan (Kent) Li has resigned as Chief Risk Officer but continues to serve as President and Director of the Board. A new Chief Risk Officer has been appointed, Yufan Jiang, who joined X Financial in 2015. Mr. Ding (Gardon) Gao has resigned from the position of Chief Technology Officer.
Outlook for the business world
It is anticipated that the total loan amount that the Company will facilitate and originate for the fourth quarter of 2023 will range from RMB26.5 billion to RMB28.0 billion. The total loan amount that will be facilitated and originated for 2023 is expected to range from RMB105.9 billion to RMB107.4 billion.
It is important to note that this forecast is based on the Company's current and preliminary views, which are subject to change at any time.
Call for a conference call
There will be an earnings conference call hosted by X Financial's management team on November 22, 2023 from 9:00 PM U.S. Eastern Time to 10:00 AM Beijing / Hong Kong Time on November 23, 2023.
The following are the details for dialing in to the earnings conference call:
In order to join the call, you will need to call in ten minutes before the call is scheduled to start and provide the passcode.
Until November 29, 2023, you will be able to access a replay of the conference call by calling one of the following numbers:
In addition, a live and archived webcast of the conference call will be available at http://ir.xiaoyinggroup.com during the live conference call.
A brief overview of X Financial
A leading online personal finance company in China, X Financial (NYSE: XYF) (the "Company") connects borrowers with their institutional funding partners through its platform. The Company is dedicated to facilitating and originating loans to prime borrowers using a risk assessment and control system based on its proprietary big data-driven technology. The Company has established strategic partnerships with financial institutions across a variety of areas of its business operations by making use of its proprietary big data-driven technology.
In order to get more information, please visit the following website: http://ir.xiaoyinggroup.com/.
Non-GAAP Financial Measures Statement - Use of Non-GAAP Financial Measures
We consider and use non-GAAP measures as supplemental measures in reviewing and assessing our operating performance in order to evaluate the performance of our business and business operations. It is our intention to present the non-GAAP financial measures because they are used by our management to evaluate our operational performance and to formulate business plans in the future. The use of non-GAAP financial measures is considered by us to be a beneficial tool in facilitating investors' assessments of our operating performance as well as helping investors identify underlying trends in our business, which may otherwise be distorted by the impact of certain income and expenses that are included in the income (loss) from operations and the net income (loss) from operations.. Furthermore, we believe that non-GAAP measures provide a valuable insight into the core operating results of our company, enhance the overall understanding of our past performance and future prospects, and allow greater visibility with respect to key metrics that our management uses in its financial and operational decision-making process.
Furthermore, we believe that non-GAAP measures provide a valuable insight into the core operating results of our company, enhance the overall understanding of our past performance and future prospects, and allow greater visibility with respect to key metrics that our management uses in its financial and operational decision-making process.
As part of this press release, we will present the following non-GAAP financial measures: (i) adjusted net income, (ii) adjusted net income per basic ADS, and (iii) adjusted net income per diluted ADS, all of which exclude share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments, and impairment losses on long-term investments.. Investors should not use these non-GAAP financial measures as a substitute for the financial information prepared and presented in accordance with U.S. GAAP when assessing our operating performance, as they have limitations as analytical tools, and should not consider them in isolation or as a substitute for the financial information prepared and presented in accordance with U.. According to GAAP,
According to GAAP,
In order to mitigate these limitations, we reconcile non-GAAP financial measures with the most directly comparable U.S. GAAP financial measures, which should be considered when evaluating our performance as a whole. It is very important that you review our financial information in its entirety, and do not rely solely on one financial measure.
In order to obtain further information regarding these non-GAAP financial measures, please refer to the table at the end of this press release entitled "Reconciliations of GAAP and Non-GAAP results" for more information.
Information about the exchange rate
As an added convenience to the reader, this announcement contains translations of certain RMB amounts into U.S. dollars at specified exchange rates for the convenience of the reader. In the case of translations from RMB to U.S. dollars, unless otherwise noted, all conversions are made at a rate of RMB7.2960 for every 1 U.S. dollar, according to the H.10 statistical release of the Federal Reserve System for September 30, 2023.
Notice of disclaimer
Statement of Safe Harbor
It should be noted that this announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended,. We are making these forward-looking statements pursuant to the "safe harbor" provisions of the Securities Exchange Act of 1934.. In 1995, the Private Securities Litigation Reform Act was passed.. It is possible to identify these statements by the terms such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance," and similar terms.. It is also possible for the Company to make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission. The Securities and Exchange Commission (the "SEC") publishes in its annual report to shareholders, in press releases and other written materials, as well as in oral statements made by its officers, directors and employees to third parties in its annual report, press releases, or other written materials. Any statements that are not historical facts, such as 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 stated 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. Detailed information regarding these and other risks, uncertainties, and factors is included in the Company's filings with the Securities and Exchange Commission (SEC).. Accordingly, the information contained in this announcement is accurate and current as of the date of this announcement, and the Company does not undertake any obligation to update this information, except as required by law.
Accordingly, the information contained in this announcement is accurate and current as of the date of this announcement, and the Company does not undertake any obligation to update this information, except as required by law.
The use of projections
Furthermore, this announcement contains certain financial forecasts (or guidance) with respect to the projected financial results of the Company.. 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 including them in this announcement, and accordingly, they have not expressed any opinion or provided any other form of assurance with respect to the projections or guidance for the purpose of this announcement.. In any case, this guidance should not be relied upon as being indicative of future results in any way. There are a 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, which are inherently uncertain, and they are subject to a wide variety of significant business, economic, and competitive risks and uncertainties.. As a result, there can be no assurance that the prospective financial results are representative of the future performance of the Company, or that actual results will not differ materially from those set forth in the prospective financial information set forth in this report.. The inclusion of prospective financial information in this announcement should not be taken as a representation by any person that the results contained in the prospective financial information will actually be achieved in the future.. If you would like to review this information together with the historical information about the Company, you should do so
If you would like to review this information together with the historical information about the Company, you should do so
If you would like more information, please contact:
Mr. Frank Fuya Zheng is the Executive Director at X FinancialE-mail: [email protected] 
IR at Christensen
Mr. Eric YuanPhone: +86-10-5900-1548E-mail: [email protected]I am located in China. 
In the USMs. Linda BergkampTel: +1-480-614-3004Email: [email protected]
FINANCIAL SUPPLIER SOURCE X
It was today announced that X Financial (NYSE: XYF) (the "Company" or "we"), one of the largest online personal finance companies in China will hold its annual conference in 2023.
In a statement made today, X Financial (NYSE: XYF) (the "Company"), a leading online personal finance company in China, announced that it will release its unaudited financial statements...
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