EX-99.1 2 tm2531559d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

X Financial Reports Third Quarter 2025 Unaudited Financial Results

 

SHENZHEN, China, November 20, 2025 /PRNewswire/ -- X Financial (NYSE: XYF) (“X Financial” or the “Company” or “we”), a leading Chinese fintech platform, today announced its unaudited financial results for the third quarter ended September 30, 2025.

 

Third Quarter 2025 Operational Highlights

 

·Total loan amount facilitated and originated1 in the third quarter of 2025 was RMB33,641 million, up 18.7% from RMB28,338 million in the same period of 2024.

·Total outstanding loan balance2 at the end of the third quarter of 2025 was RMB62,827 million, up 37.3% from RMB45,766 million in the same period of 2024.

·The number of loans the Company facilitated and originated in the third quarter of 2025 was approximately 3.48 million, an increase of 32.0% year-over-year. The average loan amount per transaction was RMB9,654.

·Number of active borrowers3 in the third quarter of 2025 was 2.44 million, up 24.2% from 1.97 million in the same period of 2024, reflecting solid year-over-year growth amid a sequential moderation in borrower activity.

·Cumulative number of active borrowers4 reached 19.69 million as of September 30, 2025, an increase of 28.1% from 15.37 million in the same period of 2024.

·The delinquency rate for all outstanding loans that are past due for 31-60 days5 was 1.85% as of September 30, 2025 (markedly higher than 1.02% in the same period of 2024), and the delinquency rate for all outstanding loans that are past due 91-180 days6 was 3.52% (rising from 3.22% in the same period of 2024).

 

 

1 Represents the total amount of loans that the Company facilitated and originated during the relevant period.

2 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.

3 Represents borrowers who made at least one transaction on the Company’s platform during the relevant period.

4 Represents borrowers who made at least one transaction on the Company’s platform since inception through the end of the relevant period.

5 Represents the balance of the outstanding principal for Xiaoying Credit Loans — our primary category of online personal credit loan products facilitated and originated through our platform, including Xiaoying Card Loan as well as other unsecured loan products that we introduce from time to time. The percentage is calculated as the balance of Xiaoying Credit Loans that were 31 to 60 days past due divided by the total outstanding principal balance of Xiaoying Credit Loans facilitated and originated by the Company as of the specific date. Loans that are delinquent for more than 60 days are excluded from the denominator. Starting from the first quarter of 2021, substantially all loans facilitated and originated by the Company have been Xiaoying Credit Loans.

6 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 for Xiaoying Credit Loans that were 91 to 180 days past due as a percentage of the total balance of outstanding principal 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.

 

 

 

 

 

Third Quarter 2025 Operational Highlights

 

   Three Months Ended
September 30, 2024		   Three Months Ended
June 30, 2025		   Three Months Ended
September 30, 2025		   QoQ   YoY 
Total loan amount facilitated and originated (RMB in million)   28,338    38,994    33,641    (13.7)%   18.7%
Number of active borrowers   1,965,248    2,853,063    2,441,788    (14.4)%   24.2%

 

   As of September 30, 2024   As of June 30, 2025   As of September 30, 2025 
Total outstanding loan balance (RMB in million)   45,766    64,911    62,827 
Delinquency rates for all outstanding loans that are past due for 31-60 days   1.02%   1.16%   1.85%
Delinquency rates for all outstanding loans that are past due for 91-180 days   3.22%   2.91%   3.52%

 

Third Quarter 2025 Financial Highlights

 

·Total net revenue in the third quarter of 2025 was RMB1,961.0 million (US$275.5 million), representing an increase of 23.9% from RMB1,582.5 million in the same period of 2024 and a decrease of 13.7% from the previous quarter. The year-over-year growth was driven by higher loan facilitation volumes.

·Income from operations in the third quarter of 2025 was RMB361.9 million (US$50.8 million), a decrease of 28.9% compared to RMB509.0 million in the same period of 2024. The decline was primarily driven by higher provisions for contingent guarantee liabilities and other credit-related costs, as well as increased data and collection expenses, while borrower acquisition expenses remained relatively stable year-over-year. As a result, operating margin decreased to 18.5% from 32.2% in the same period of 2024, reflecting the impact of elevated credit-related costs and intensified borrower acquisition efforts.

·Net income in the third quarter of 2025 was RMB421.2 million (US$59.2 million), compared with RMB375.8 million in the same period of 2024 (a 12.1% increase year-over-year).

·Non-GAAP7 adjusted net income in the third quarter of 2025 excluding share-based compensation and certain investment-related items was RMB438.2 million (US$61.6 million), up 1.0% from RMB433.6 million in the same period of 2024. This measure is used by the Company to assess its core profitability on an adjusted basis.

·Net income per basic and diluted American depositary share (“ADS”) in the third quarter of 2025 was RMB10.56 and RMB10.08 (US$1.48 and US$1.42), respectively, compared with RMB7.86 and RMB7.74 in the same period of 2024.

·Non-GAAP adjusted net income per basic and diluted ADS in the third quarter of 2025 was RMB11.04 and RMB10.44 (US$1.55 and US$1.47), respectively, compared with RMB9.12 and RMB8.88 in the same period of 2024.

 

 

7 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.

 

 

 

 

Each ADS represents six Class A ordinary shares.

 

Third Quarter 2025 GAAP and Non-GAAP Financial Summary

 

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

Three Months Ended
September 30, 2024

   Three Months Ended
June 30, 2025		   Three Months Ended
September 30, 2025		   QoQ   YoY 
    RMB     RMB     RMB            
Total net revenue   1,582,497    2,273,123    1,960,954    (13.7)%   23.9%
Total operating costs and expenses   (1,073,533)   (1,598,067)   (1,599,021)   0.1%   48.9%
Income from operations   508,964    675,056    361,933    (46.4)%   (28.9)%
Net income   375,840    528,016    421,241    (20.2)%   12.1%
Non-GAAP adjusted net income   433,625    593,215    438,178    (26.1)%   1.0%
                          
Net income per ADS—basic   7.86    12.60    10.56    (16.2)%   34.4%
Net income per ADS—diluted   7.74    12.00    10.08    (16.0)%   30.2%
                          
Non-GAAP adjusted net income per ADS—basic   9.12    14.16    11.04    (22.0)%   21.1%
Non-GAAP adjusted net income per ADS—diluted   8.88    13.50    10.44    (22.7)%   17.6%

 

Mr. Kent Li, President of X Financial, commented: “In the third quarter of 2025, we facilitated and originated RMB33.6 billion in loans — a decline of 13.7% from the previous quarter, but still 18.7% higher year-over-year. Borrower activity moderated sequentially, reflecting a more cautious lending environment. We served approximately 2.44 million active borrowers during the quarter, up 24.2% from a year ago, while observing a moderation in borrower activity across our core channels. Asset quality came under some pressure, with the 31–60 day delinquency rate rising to 1.85% and the 91–180 day delinquency rate increasing to 3.52%. These changes reflected shifts in consumer repayment behavior and a more cost-intensive operating environment observed across the industry. We remain focused on strengthening risk control and collection efficiency to mitigate potential credit losses. While profitability was affected by higher provisions and narrowing margins, our strategic priorities remain unchanged — enhancing risk management, improving operational efficiency, and maintaining compliance discipline. Looking ahead, we are prioritizing credit quality, liquidity stability, and disciplined execution to navigate this period of adjustment and preserve long-term competitiveness.”

 

Mr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: “In the third quarter of 2025, total revenue was RMB1.96 billion, an increase of 23.9% from the same period last year but down 13.7% sequentially. Net income was RMB421 million and non-GAAP adjusted net income was RMB438 million, both lower than the prior quarter as higher provisions and operating costs weighed on profitability. Basic earnings per ADS were RMB10.56, and non-GAAP adjusted earnings per ADS were RMB11.04, up 34.4% and 21.1% year-over-year, respectively. Operating margin declined to 18.5%, reflecting rising credit-related costs and a more cautious lending environment. We will continue to manage capital conservatively, strengthen our balance sheet, and maintain cost discipline to support business resilience amid an evolving regulatory and operating landscape.”

 

 

 

 

Business Outlook & Share Repurchase Plans：

 

·Business Outlook: Based on current trends, X Financial expects the total loan amount facilitated and originated in the fourth quarter of 2025 to be in the range of RMB 21.0 billion to RMB 23.0 billion. The total loan amount facilitated and originated for 2025 is expected to be in the range of RMB 128.8 billion and RMB 130.8 billion. This guidance reflects a measured pace of origination following a sequential decline in the third quarter and management’s continued focus on asset quality, credit discipline, and profitability optimization rather than aggressive volume expansion. The Company remains attentive to recent regulatory developments and evolving credit conditions, while maintaining confidence in resilient borrower demand, prudent risk control, and disciplined execution to support sustainable long-term growth.

 

·Capital Return to Shareholders: From January 1, 2025 through November 20, 2025, X Financial repurchased an aggregate of approximately 4.26 million ADSs, including approximately 3.80 million ADSs and 2.76 million Class A ordinary shares, for a total consideration of approximately US$67.9 million under its share repurchase programs. The Company now has approximately US$48.0 million remaining under its existing US$100 million share repurchase program, which is effective through November 30, 2026. This program underscores the Company’s confidence in its long-term growth outlook and its commitment to enhancing shareholder value. Repurchases under the program remain subject to market conditions and other factors and may be modified or suspended at management’s discretion.

 

Third Quarter 2025 Financial Results

 

Revenue Growth and Business Drivers:

 

Total net revenue in the third quarter of 2025 was RMB1,961.0 million (US$275.5 million), an increase of 23.9% from RMB1,582.5 million in the same period of 2024, but a decrease of 13.7% from the previous quarter. The year-over-year growth was mainly attributable to higher post-origination and guarantee income recognized from loans facilitated in prior periods, while revenue from new loan facilitation grew only modestly. The quarter-over-quarter decline reflected a moderation in borrower activity and a shift in the revenue mix.

 

Revenue growth in the third quarter of 2025 was uneven across business lines. Loan facilitation service fees increased 8.7% year-over-year to RMB954.5 million (US$134.1 million), primarily reflecting a modest rise in the total loan amount facilitated compared with the same period of 2024. Post-origination service fees rose 54.6% to RMB287.8 million (US$40.4 million), and guarantee income increased to RMB187.8 million (US$26.4 million) due to the cumulative effect of higher volumes of loans facilitated covered by our guarantee service in prior periods. Financing income increased 11.1% to RMB372.9 million (US$52.4 million), supported by higher average loan balances held by the Company, while other revenue increased 22.7% to RMB157.9 million (US$22.2 million), mainly from expanded insurance brokerage activity. On a sequential basis, total net revenue declined 13.7% from the second quarter of 2025, reflecting a moderation in borrower activity and a shift in the revenue mix. Return on equity8 decreased to 21.5%, compared with 27.9% in the prior quarter and 22.2% a year earlier, primarily reflecting lower net income during the quarter.

 

 

8 Financial Ratios:
– Operating margin: Calculated as Income from Operations for the quarter divided by Total Net Revenue for the quarter.

– Net profit margin: Calculated as Net Income for the quarter divided by Total Net Revenue for the quarter.

– Annualized Net Income: Calculated by multiplying the net income for the quarter by four to estimate a full-year equivalent.
– Return on equity: Calculated as annualized Net Income divided by the average of Total Shareholders’ Equity at the beginning and end of the quarter. This measure presents a full-year equivalent ROE based on a single quarter’s performance.

 

 

 

 

Asset Quality: Credit quality weakened during the quarter as delinquency rates increased across key categories. Delinquency rates for loans 31–60 days and 91–180 days past due rose 82.0% and 9.3% year-over-year, respectively, reflecting deteriorating borrower repayment behavior amid a more challenging macro environment. Provision for contingent guarantee liabilities increased sharply to RMB332.1 million, mainly due to higher guaranteed loan balances and elevated credit risk exposure. Overall, credit-related costs rose significantly during the quarter, reflecting a more cautious approach to risk management and higher expected loss provisions.

 

Profitability and Margins: Profitability declined in the third quarter of 2025 as higher credit-related provisions offset year-over-year revenue growth. Operating margin8 decreased to 18.5%, compared with 29.7% in the previous quarter and 32.2% in the same period of 2024. The increase in total expenses on a year-over-year basis was primarily driven by a sharp rise in provisions for contingent guarantee liabilities and other credit loss reserves, reflecting elevated credit risk exposures and higher guarantee balances. Net profit margin8 narrowed to 21.5%, down from 23.2% in the prior quarter, reflecting increased risk costs and a less favorable revenue mix. Net income decreased 20.2% quarter-over-quarter to RMB421.2 million, but remained 12.1% higher year-over-year. Net income per basic ADS was RMB10.56 (US$1.48), down 16.2% sequentially but up 34.4% from a year ago.

 

Funding and Liquidity: The Company maintained a stable funding position in the third quarter of 2025 amid a more challenging operating environment. Cash and cash equivalents totaled RMB890.9 million (US$125.1 million) as of September 30, 2025, compared with RMB984.6 million as of December 31, 2024. The decrease primarily reflected redeployment of cash into higher-yielding investments as part of treasury management activities. Total restricted cash was RMB659.1 million (US$92.6 million), bringing total cash (including restricted) to approximately RMB1.55 billion (US$217.7 million). Shareholders’ equity increased to RMB7,928.7 million (US$1.11 billion), supported by retained earnings growth. The equity-to-assets ratio was approximately 54.0%, reflecting a modest decline from prior levels as total assets expanded and contingent guarantee liabilities rose.

 

Regulatory Update: The regulatory environment for internet-based lending in China remained fluid during the third quarter of 2025, with continuing discussions among regulators regarding additional consumer-protection measures and funding-cost reductions. While certain policy measures have been formally introduced, the implementation process and detailed application guidelines are still being developed. Recent communications from the National Financial Regulatory Administration and other authorities continue to emphasize lowering borrowing costs and strengthening consumer protection, reflecting an ongoing effort to promote orderly and sustainable industry development.

 

 

 

 

The Company believes that, once clarified and implemented, these potential policy adjustments could exert downward pressure on pricing, margins, and profitability across the industry for the foreseeable future. The timing, scope, and precise application of such measures remain uncertain, and management currently has limited visibility into how forthcoming regulations may affect overall business operations.

 

In light of the evolving environment, the Company continues to prioritize compliance readiness, conservative funding management, and risk mitigation. It is proactively evaluating potential structural and operational adjustments to maintain regulatory alignment while protecting long-term sustainability under a tightening supervisory framework.

 

Conference Call

 

X Financial’s management team will host an earnings conference call at 8:30 AM U.S. Eastern Time on November 21, 2025 (9:30 PM Beijing / Hong Kong Time on November 21, 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 November 28, 2025:

 

United States: 1-855-669-9658
International: 1-412-317-0088
Passcode: 4942170

 

About X Financial

 

X Financial (NYSE: XYF) (the “Company”) is a leading Chinese fintech platform. 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

 

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 press release 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 RMB7.1190 to US$1.00, the exchange rate in effect as of September 30, 2025, as published in the Federal Reserve Board’s H.10 statistical release. Percentages stated in this release are calculated based on the RMB amounts.

 

 

 

 

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 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. Noah Kauffman (Chief Financial Strategy Officer)
E-mail: ir@xiaoying.com

 

 

 

 

X Financial
Unaudited Condensed Consolidated Balance Sheets

 

(In thousands, except for share and per share data)  As of December 31, 2024   As of September 30, 2025   As of September 30, 2025 
   RMB   RMB   USD 
ASSETS               
Cash and cash equivalents   984,611    890,854    125,138 
Restricted cash, net   676,793    659,112    92,585 
Accounts receivable and contract assets, net   2,029,550    3,065,608    430,623 
Loans receivable from Credit Loans and other loans, net   4,828,317    5,620,402    789,493 
Deposits to institutional cooperators, net   1,958,297    2,093,353    294,052 
Prepaid expenses and other current assets   34,079    88,355    12,412 
Financial guarantee derivative   1,038    1,575    221 
Deferred tax assets, net   197,713    303,896    42,688 
Long term investments   498,038    509,245    71,533 
Property and equipment, net   15,833    20,824    2,925 
Intangible assets, net   36,592    37,815    5,312 
Financial investments   513,476    1,339,050    188,095 
Other non-current assets   44,951    58,543    8,223 
TOTAL ASSETS   11,819,288    14,688,632    2,063,300 
                
LIABILITIES               
Payable to investors and institutional funding partners at amortized cost   2,184,086    2,856,870    401,302 
Contingent guarantee liabilities   187,641    570,452    80,131 
Deferred guarantee income   164,725    470,335    66,068 
Short-term borrowings   328,500    566,377    79,559 
Accrued payroll and welfare   94,717    110,008    15,453 
Other tax payable   279,993    219,756    30,869 
Income tax payable   591,491    677,834    95,215 
Accrued expenses and other current liabilities   941,506    1,182,113    166,050 
Other non-current liabilities   27,516    37,424    5,257 
Deferred tax liabilities   65,959    68,719    9,653 
TOTAL LIABILITIES   4,866,134    6,759,888    949,557 
                
Commitments and Contingencies               
Equity:               
Common shares (250,678,439 and 234,423,629 shares outstanding as of December 31, 2024 and September 30, 2025)   207    207    29 
Treasury stock   (509,644)   (904,502)   (127,055)
Additional paid-in capital   3,207,028    3,257,308    457,551 
Retained earnings   4,174,511    5,506,606    773,508 
Other comprehensive income   81,052    69,125    9,710 
TOTAL EQUITY   6,953,154    7,928,744    1,113,743 
                
TOTAL LIABILITIES AND EQUITY   11,819,288    14,688,632    2,063,300 

 

 

 

 

X Financial

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
(In thousands, except for share and per share data)  2024   2025   2025   2024   2025   2025 
    RMB    RMB    USD     RMB     RMB     USD  
Net revenues                              
Loan facilitation service   878,282    954,513    134,080    2,224,681    3,402,336    477,923 
Post-origination service   186,109    287,755    40,421    493,520    825,203    115,916 
Financing income   335,765    372,911    52,382    1,021,405    1,002,989    140,889 
Guarantee income   53,576    187,829    26,384    132,067    373,327    52,441 
Other revenue   128,765    157,946    22,187    291,387    567,727    79,748 
Total net revenue   1,582,497    1,960,954    275,454    4,163,060    6,171,582    866,917 
                               
Operating costs and expenses:                              
Origination and servicing   457,545    527,470    74,093    1,299,164    1,515,168    212,834 
Borrower acquisitions and marketing   506,758    524,939    73,738    1,078,768    1,990,210    279,563 
General and administrative   49,499    52,118    7,321    127,047    153,402    21,548 
Provision for accounts receivable and contract assets   4,799    60,702    8,527    22,470    103,110    14,484 
(Reversal of) provision for loans receivable   (35)   98,995    13,906    157,370    207,585    29,159 
Provision for contingent guarantee liabilities   56,366    332,091    46,649    125,635    603,221    84,734 
Change in fair value of financial guarantee derivative   -    3,654    513    -    (11,337)   (1,592)
(Reversal of) provision for credit losses for deposits and other financial assets   (1,399)   (948)   (133)   4,049    328    46 
Total operating costs and expenses   1,073,533    1,599,021    224,614    2,814,503    4,561,687    640,776 
                               
Income from operations   508,964    361,933    50,840    1,348,557    1,609,895    226,141 
Interest income (expenses), net   1,211    4,947    695    (4,898)   6,213    873 
Foreign exchange gain (loss)   4,881    (261)   (37)   (3,351)   (10,643)   (1,495)
Income (loss) from financial investments1   (760)   5,113    718    3,738    (13,943)   (1,959)
Other income (loss), net   6,048    125,066    17,568    9,437    127,222    17,871 
                               
Income before income taxes   520,344    496,798    69,784    1,353,483    1,718,744    241,431 
                               
Income tax expense   (100,331)   (80,176)   (11,262)   (254,924)   (307,499)   (43,194)
Gain from equity in affiliates, net of tax   2,702    13,329    1,872    5,572    20,976    2,946 
Gain (loss) from financial investments at equity method, net of tax1   (46,875)   (8,710)   (1,223)   50,149    (24,837)   (3,489)
Net income   375,840    421,241    59,171    1,154,280    1,407,384    197,694 
Less: net income attributable to non-controlling interests   -    -    -    -    -    - 
Net income attributable to X Financial shareholders   375,840    421,241    59,171    1,154,280    1,407,384    197,694 
                               
Net income   375,840    421,241    59,171    1,154,280    1,407,384    197,694 
Other comprehensive income, net of tax of nil:                              
Gain (loss) from equity in affiliates   (449)   (6)   (1)   (418)   178    25 
Income (loss) from financial investments   1,580    -    -    6,100    (768)   (108)
Foreign currency translation adjustments   (12,778)   (8,144)   (1,144)   (7,590)   (11,337)   (1,592)
Comprehensive income   364,193    413,091    58,026    1,152,372    1,395,457    196,019 
Less: comprehensive income attributable to non-controlling interests   -    -    -    -    -    - 
Comprehensive income attributable to X Financial shareholders   364,193    413,091    58,026    1,152,372    1,395,457    196,019 
                               
Net income per share—basic   1.31    1.76    0.25    3.96    5.69    0.80 
Net income per share—diluted   1.29    1.68    0.24    3.87    5.43    0.76 
                               
Net income per ADS—basic   7.86    10.56    1.48    23.76    34.14    4.80 
Net income per ADS—diluted   7.74    10.08    1.42    23.22    32.58    4.58 
                               
Weighted average number of ordinary shares outstanding—basic   285,857,203    238,782,763    238,782,763    291,622,784    247,497,867    247,497,867 
Weighted average number of ordinary shares outstanding—diluted   292,339,641    251,288,265    251,288,265    298,036,305    259,033,100    259,033,100 

 

 

¹ 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 September 30,   Nine Months Ended September 30, 
(In thousands, except for share and per share data)  2024   2025   2025   2024   2025   2025 
   RMB   RMB   USD   RMB   RMB   USD 
GAAP net income   375,840    421,241    59,171    1,154,280    1,407,384    197,694 
Less: Income (loss) from financial investments (net of tax of nil)   (760)   5,113    718    3,738    (13,943)   (1,959)
Less: Impairment losses on financial investments (net of tax of nil)   -    -    -    -    -    - 
Less: Impairment losses on long-term investments (net of tax)   -    -    -    -    -    - 
Less: Gain (loss) from financial investments at equity method (net of tax of nil)   (46,875)   (8,710)   (1,223)   50,149    (24,837)   (3,489)
Add: Share-based compensation expenses (net of tax of nil)   10,150    13,340    1,874    30,096    51,996    7,304 
Non-GAAP adjusted net income   433,625    438,178    61,550    1,130,489    1,498,160    210,446 
                               
Non-GAAP adjusted net income per share—basic   1.52    1.84    0.26    3.88    6.05    0.85 
Non-GAAP adjusted net income per share—diluted   1.48    1.74    0.24    3.79    5.78    0.81 
                               
Non-GAAP adjusted net income per ADS—basic   9.12    11.04    1.55    23.28    36.30    5.10 
Non-GAAP adjusted net income per ADS—diluted   8.88    10.44    1.47    22.74    34.68    4.87 
                               
Weighted average number of ordinary shares outstanding—basic   285,857,203    238,782,763    238,782,763    291,622,784    247,497,867    247,497,867 
Weighted average number of ordinary shares outstanding—diluted   292,339,641    251,288,265    251,288,265    298,036,305    259,033,100    259,033,100