SHENZHEN, China, March 30, 2022 /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, 2021.
Fourth Quarter 2021 Financial Highlights
- Total net revenue in the fourth quarter of 2021 was
RMB823.4 million (US$129.2 million), representing an increase of
15.0% from RMB716.3 million in the
same period of 2020.
- Income from operations in the fourth quarter of 2021 was
RMB311.6 million (US$48.9 million), compared with loss from
operations of RMB857.3 million in the
same period of 2020.
- Net income attributable to X Financial shareholders in the
fourth quarter of 2021 was RMB145.5
million (US$22.8 million),
compared with net loss attributable to X Financial shareholders of
RMB655.5 million in the same period
of 2020.
- Non-GAAP[1] adjusted net income attributable to X
Financial shareholders in the fourth quarter of 2021 was
RMB183.0 million (US$28.7 million), compared with Non-GAAP adjusted
net loss attributable to X Financial shareholders of RMB630.8 million in the same period of 2020.
- Net income per basic and diluted American depositary share
("ADS")[2] in the fourth quarter of 2021 was
RMB2.64 (US$0.41) and RMB2.58 (US$0.40),
compared with net loss per basic and diluted ADS of RMB12.24 and RMB12.24, respectively, in the same period of
2020.
- Non-GAAP adjusted net income per basic and adjusted diluted ADS
in the fourth quarter of 2021 was RMB3.30 (US$0.52)
and RMB3.24 (US$0.51), compared with Non-GAAP adjusted net
loss per basic and diluted ADS of RMB11.76 and RMB11.76, respectively, in the same period of
2020.
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[1] The
Company uses in this press release the following non-GAAP financial
measures: (i) adjusted net income (loss), (ii) adjusted net income
(loss) attributable to X Financial shareholders, (iii) adjusted net
income (loss) per basic ADS, and (iv) adjusted net income (loss)
per diluted ADS, each of which excludes share-based compensation
expense and income (loss) from financial 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.
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[2] Each
American depositary share ("ADS") represents six Class A
ordinary shares. On November 19, 2020, a ratio change that has the
same effect as a 1-for-3 reverse ADS split took effect, and as a
result, one ADS currently represents six Class A ordinary
shares.
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Fourth Quarter 2021 Operational Highlights
- The total loan amount facilitated and provided[3] in
the fourth quarter of 2021 was RMB13,084
million, representing an increase of 50.9% from RMB8,673 million in the same period of 2020 and a
decrease of 13.3% from RMB15,085
million in the previous quarter. Xiaoying Credit Loan[4] accounted for
100.0% of the Company's total loan amount facilitated and provided
in the fourth quarter of 2021, compared with 92.2% in the same
period of 2020.
- The total outstanding loan balance[5] as of
December 31, 2021 was RMB24,912 million, compared with RMB24,509 million as of September 30, 2021 and RMB13,218 million as of December 31, 2020.
- The delinquency rate for all outstanding loans that are past
due for 31-60 days as of December 31,
2021 was 1.48%, compared with 0.96% as of September 30, 2021 and 0.79% as of December 31, 2020.
- The number of cumulative borrowers[6] was 8.2
million as of December 31, 2021.
- Total cumulative registered users reached 67.0 million as of
December 31, 2021.
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[3]
Represents the total amount of loans that X Financial facilitated
and provided during the relevant period.
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[4]
Xiaoying Credit Loan is a category of online personal credit loan
products facilitated and provided through our platform, including
Xiaoying Card Loan and other unsecured loan products we introduce
from time to time.
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[5]
Represents the total amount of loans outstanding for loans X
Financial facilitated and provided at the end of the relevant
period. Loans that are delinquent for more than 60 days are
charged-off and are excluded in the calculation of delinquency rate
by balance, except for Xiaoying Housing Loan. As Xiaoying Housing
Loan is a secured loan product and the Company is entitled to
payment by exercising its rights to the collateral, the Company
does not charge off Xiaoying Housing Loans delinquent for more than
60 days. Xiaoying Housing Loan was launched in July 2015 and ceased
in February 2019, and all the outstanding loan balance of housing
loan as of December 31, 2020 and 2021 were overdue more than 60
days. To make the delinquency rate by balance comparable, the
Company excludes Xiaoying Housing Loan in the calculation of
delinquency rate.
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[6]
Represents borrowers who made at least one transaction during that
period from the commencement of the Company's loan facilitation
business to a certain date on the Company's platform.
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Fiscal Year 2021 Financial Highlights
- Total net revenue in 2021 was RMB3,626.5
million (US$569.1 million),
representing an increase of 65.4% from RMB2,193.0 million in 2020.
- Income from operations in 2021 was RMB1,311.0 million (US$205.7 million), compared with loss from
operations of RMB1,430.3 million in
2020.
- Net income attributable to X Financial shareholders in 2021 was
RMB825.4 million (US$129.5 million), compared with net loss
attributable to X Financial shareholders of RMB1,308.5 million in 2020.
- Non-GAAP adjusted net income attributable to X Financial
shareholders in 2021 was RMB913.8
million (US$143.4 million),
compared with non-GAAP adjusted net loss attributable to X
Financial shareholders of RMB1,228.4
million in 2020.
- Net income per basic and diluted American depositary share
("ADS") was RMB15.06 (US$2.36) and RMB14.70 (US$2.31)
in 2021, compared with net loss per basic and diluted American
depositary share ("ADS") of RMB24.42
and RMB24.42, respectively, in
2020.
- Non-GAAP adjusted net income per basic and adjusted diluted ADS
was RMB16.68 (US$2.62), and RMB16.26 (US$2.55)
in 2021, compared with non-GAAP adjusted net loss per basic and
adjusted diluted ADS of RMB22.92 and
RMB22.92, respectively, in 2020.
Fiscal Year 2021 Operational Highlights
- The total loan amount facilitated and provided in 2021 was
RMB51,859 million, representing an
increase of 74.7% from RMB29,676
million in 2020.
- The total loan amount facilitated and provided of Xiaoying Credit Loan in 2021 was RMB51,859 million, representing an increase of
115.6% from RMB24,058 million in
2020. Xiaoying Credit Loan accounted
for 100.0% of the Company's total loan amount facilitated and
provided in 2021, compared with 81.1% in 2020.
Mr. Justin Tang, the Founder,
Chief Executive Officer and Chairman of the Company, commented, "We
are very pleased to conclude 2021 with another solid quarter of
financial results, delivering profitability for the full year. Both
our top and bottom lines for the fourth quarter significantly
improved over the same period of 2020. Despite a challenging macro
economy and regulatory environment in 2021, we have successfully
turned our business back on track and maintained steady growth
momentum compared with 2020. The total loan amount facilitated and
provided in 2021 increased by 75% year-over-year to RMB52 billion from RMB30
billion. With a very focused product strategy and effective
cost control initiatives, we turned profitable in 2021 and our
bottom line outperformed the full year of 2019, the year before the
COVID-19 outbreak."
"In the fourth quarter of 2021, we invested RMB315 million and become an indirect minority
shareholder of Newup Bank of Liaoning, a PRC company and non-state-owned
bank ("Newup Bank"). We are exploring opportunities to cooperate
with Newup Bank to better serve Small-Medium Companies ("SMEs") and
we are confident that, based on our advantages in technology and
risk management capabilities, the co-operation with Newup Bank
could bring more possibilities to our business to jointly empower
and support the development of the economy in China."
"Heading into 2022, we expect regulatory uncertainties to
subside with clearer guidelines from authorities. The Chinese
government has affirmed the value of Fintech industry to address
people's inclusive financial needs and support the development of
SMEs. We remain cautiously optimistic about our business outlook
while being prepared for any macro uncertainties that may emerge in
2022."
"In order to pass on our confidence to the market and increase
shareholders value, our board has been timely evaluating, based on
current market environment, regulatory policy and condition of
business operation, multiple ways of returning profits to our
shareholders, including share repurchase as well as cash dividend
distribution. Recently, our board approved a US$15 million share repurchase plan, which
reflects our confidence in the Company's fundamentals, strategy and
sustainable growth. We are looking forward to an increase of
shareholder value in the future."
Mr. Kent Li, President of the
Company, added, "During the fourth quarter, our total loan amount
facilitated and provided reached RMB13
billion, an increase of 51% year-over-year. As mentioned in
our previous guidance, we saw a moderate sequential decline in the
loan volume in the fourth quarter, which was mainly attributed to
the year-end outstanding loan balance requirements of our
institutional funding partners. In the first quarter of 2022, the
level of available funds has resumed its normal pattern. Since
2020, we have shifted our product focus to Xiaoying Card Loan, which contributed 100% to
the total loan amount facilitated and provided in 2021. With this
focused and proven product strategy, we are confident in our
ability to sustain steady growth in the loan facilitation business
in 2022."
"Regarding asset quality, the delinquency rate for all
outstanding loans that are past due for 31-60 days as of
December 31, 2021 was 1.48%, higher
than 0.96% as of September 30, 2021
and 0.79% as of December 31, 2020.
This fluctuation is mainly attributed to the liquidity tightening
in the fourth quarter of 2021. Since February 2022, we have seen our asset quality
gradually improving as a result of ample liquidity in financial
markets and our stricter risk management measures."
"In 2021, we officially commenced operation of our microcredit
business in the third quarter after we received regulatory approval
for our microcredit license, and during the fourth quarter, we
further increased its registered capital to RMB1 billion in compliance with the regulations.
We are on track with our microcredit business and look forward to
creating more value for our shareholders."
Mr. Frank Fuya Zheng, Chief
Financial Officer of the Company, added, "We are pleased to deliver
solid financial results for both the fourth quarter and the full
year of 2021. Total net revenue increased by 15% year-over-year to
RMB823 million in the fourth quarter.
We saw a significant improvement in our bottom line. In the fourth
quarter, net income improved to RMB146
million from a loss of RMB656
million in the same period of 2020, and Non-GAAP adjusted
net income improved to RMB183 million
from a loss of RMB631 million in the
same period of 2020. For the full year 2021, total net revenue
increased by 65% to RMB3,626 million.
Thanks to our relentless efforts on cost management, total
operating costs and expenses decreased by 36% to RMB2,315 million. Net income improved to
RMB825 million in 2021 from a loss of
RMB1,309 million, and Non-GAAP
adjusted net income improved to RMB914 million in 2021 from a loss of
RMB1,228 million a year ago."
"In conclusion, we are greatly encouraged by the strong results
we delivered in 2021, which fully demonstrate the resilience and
growth potential of our business. Going forward, we will continue
to expand and deepen our cooperation with more institutional
funding partners to meet the needs of consumers and SMEs, and
execute our proven strategy to drive sustainable long-term growth
and returns for our partners and shareholders."
Fourth Quarter 2021 Financial Results
Total net revenue in the fourth quarter of
2021 increased by 15.0% to RMB823.4 million (US$129.2 million) from RMB716.3 million in the same period of 2020,
primarily due to an increase in the total loan amount facilitated
and provided of Xiaoying Card Loan this quarter compared with
the same period of 2020.
Loan facilitation service fees under the direct model in
the fourth quarter of 2021 increased by 3.2% to RMB487.8 million (US$76.5 million) from RMB472.6 million in the same period of 2020,
primarily due to an increase in the amount of Xiaoying Card
Loan facilitated through the direct model compared with the
same period of 2020.
Post-origination service fees in the fourth
quarter of 2021 increased by 129.0% to RMB94.8 million (US$14.9 million) from RMB41.4 million in the same period of 2020,
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 2021
increased by 27.6% to RMB219.1 million (US$34.4 million) from RMB171.7 million in the same period of 2020,
primarily due to a change in the product mix resulting from an
increase in revenue generated by Xiaoying
Card Loan this quarter compared with the same period of
2020, which carried a higher service fee rate; and also partially
offset by a decrease in average loan balances held by the
Company.
Other revenue in the fourth quarter of 2021 decreased by
28.6% to RMB21.8 million
(US$3.4 million) from
RMB30.5 million in the same period of
2020, primarily due to a decrease in commission fees from our
online shopping mall.
Origination and servicing expenses in the fourth quarter
of 2021 decreased by 29.9% to RMB385.8 million (US$60.5 million) from RMB550.7 million in the same period of 2020,
primarily due to the decline in collection expenses resulting from
the asset quality improvement and a decrease in insurance fee paid
to insurance company.
General and administrative expenses in the fourth
quarter of 2021 increased by 71.0% to RMB62.2 million (US$9.8 million) from RMB36.4 million in the same period of 2020,
primarily due to an increase in share-based compensation expenses
in the fourth quarter of 2021.
Sales and marketing expenses in the fourth quarter
of 2021 increased by 9.5% to RMB5.3 million (US$0.8 million) from RMB4.9 million in the same period of 2020,
primarily due to an increase in marketing expenses resulting from
the business expansion.
Provision for accounts receivable and contract
assets in the fourth quarter of 2021 was RMB19.5 million (US$3.1 million), compared with reversal of
provision for accounts receivable and contract assets of
RMB13.2 million in the same period of
2020, primarily due to an increase in accounts receivable from
facilitation services as a result of the increase in total loan
facilitation amount in the fourth quarter of 2021 compared with the
same period of 2020.
Provision for loans receivable in the fourth quarter of
2021 was RMB40.3 million
(US$6.3 million), compared with
RMB33.7 million in the same period of
2020, primarily due to an increase in loans receivable held by the
Company as a result of the increase in total loan amount
facilitated and provided in the fourth quarter of 2021 compared
with the same period of 2020.
Income from operations in the fourth quarter of
2021 was RMB311.6 million
(US$48.9 million), compared with
loss from operations of RMB857.3 million in the same period of
2020.
Income before income taxes and loss from equity in
affiliates in the fourth quarter of 2021 was
RMB301.1 million (US$47.3 million), compared with loss before
income taxes and loss from equity in affiliates of RMB877.2 million in the same period of 2020.
Income tax expense in the fourth quarter of 2021 was
RMB154.2 million (US$24.2 million), compared with income tax
benefit of RMB227.0 million in the
same period of 2020.
Net income attributable to X Financial
shareholders in the fourth quarter of 2021 was
RMB145.5 million (US$22.8 million), compared with net loss
attributable to X Financial shareholders of RMB655.5 million in the same period of 2020.
Non-GAAP adjusted net income attributable to X Financial
shareholders in the fourth quarter of 2021 was
RMB183.0 million (US$28.7 million), compared with Non-GAAP
adjusted net loss attributable to X Financial shareholders of
RMB630.8 million in the same period
of 2020.
Net income per basic and diluted ADS in the fourth
quarter of 2021 was RMB2.64
(US$0.41), and RMB2.58 (US$0.40), compared with net loss
per basic and diluted ADS of RMB12.24
and RMB12.24, respectively, in the
same period of 2020.
Non-GAAP adjusted net income per basic and diluted
ADS in the fourth quarter of 2021 was RMB3.30 (US$0.52), and RMB3.24 (US$0.51), compared with Non-GAAP
adjusted net loss per basic and diluted ADS of RMB11.76 and RMB11.76, respectively, in the same period of
2020.
Cash and cash equivalents was RMB584.8 million (US$91.8 million) as of December 31, 2021, compared with RMB971.8 million as of September 30, 2021.
Long-term investments were RMB560.0 million (US$87.9 million) as of December 31, 2021, compared with RMB295.6 million as of December 31, 2020, primarily due to an
acquisition, with a total consideration of RMB315 million, of 45% outstanding shares of
Shenyang Tianxinhao Technology Limited, a PRC company, which holds
28% equity interest of Newup Bank. The Company does not have
ability to take in the control or management of the affairs or the
conduct of the business of Newup Bank.
Fiscal Year 2021 Financial Results
Total net revenue in 2021 increased by
65.4% to RMB3,626.5 million
(US$569.1 million) from
RMB2,193.0 million in 2020, primarily
due to an increase in the total loan amount facilitated and
provided of Xiaoying Card Loan this year compared with
2020.
Loan facilitation service fees under the direct model in
2021 increased by 101.0% to RMB2,545.4
million (US$399.4 million) from RMB1,266.5 million in 2020, primarily due to an increase in the amount
of Xiaoying Card Loan facilitated through the direct model
during the year compared with 2020.
Loan facilitation service fees under the intermediary
model in 2021 decreased by 99.6% to RMB0.2 million (US$0.03 million), compared with RMB41.4 million in the same period of 2020,
primarily due to the fact that substantially all of the
institutional funding partners invested their funds in the loans
facilitated under the direct model and/or the trust model,
depending on their investment strategies.
Post-origination service fees in 2021
increased by 54.8% to RMB315.6 million (US$49.5 million) from RMB203.8 million in 2020, primarily due to the
cumulative effect of increased volume of loans facilitated during
the year. 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 2021 increased by 9.6% to
RMB671.9 million (US$105.4 million) from RMB612.9 million in 2020, primarily due to a
change in the product mix resulting from an increase in revenue
generated by Xiaoying Card Loan in
2021 compared with 2020, which carried a higher service fee rate;
and also partially offset by a decrease in average loan balances
held by the Company.
Other revenue in 2021 increased by 36.6% to
RMB93.4 million (US$14.7 million) from RMB68.3 million in 2020, primarily due to an
increase in technology service fees received for providing
assistant technology development services and referral service fee
for introducing borrowers to other platforms.
Origination and servicing expenses in 2021 decreased by
5.2% to RMB1,963.0 million
(US$308.0 million) from
RMB2,071.5 million in 2020, primarily
due to the decline in collection expenses resulting from the asset
quality improvement and a decrease in interest expenses related to
a decline in average loan balances held by the Company, and
partially offset by the increase in commission fees resulting from
the increased in total loan amount facilitated and provided this
year compared with 2020.
General and administrative expenses in
2021 increased by 4.8% to RMB187.9 million (US$29.5 million) from RMB179.2 million in 2020, primarily due to the
increase in share-based compensation expenses in 2021.
Sales and marketing expenses in 2021 decreased
by 41.5% to RMB20.8 million
(US$3.3 million) from
RMB35.6 million in 2020, primarily
due to a continuing cost reduction in promotional and advertising
activities in the first half of 2021.
Provision for accounts receivable and contract
assets in the fourth quarter was RMB77.2 million (US$12.1 million), compared with RMB121.5 million in 2020, primarily due to a
decrease in the average estimated default rate compared with
2020.
Provision for loans receivable in 2021 was
RMB76.0 million (US$11.9 million), compared with RMB245.2 million in 2020, primarily due to a
decrease in the average estimated default rate compared with 2020,
and partially offset by an increase in loans receivable held by the
Company as a result of the increase in total loan amount
facilitated and provided in 2021 compared with 2020.
Income from operations in 2021 was RMB1,311.0 million (US$205.7 million), compared with loss from
operations of RMB1,430.3 million
in 2020.
Income before income taxes and gain from equity in
affiliates in 2021 was RMB1,190.8 million (US$186.9 million), compared with loss before
income taxes and loss from equity in affiliates of RMB1,601.5 million in 2020.
Income tax expense in 2021 was RMB368.7 million (US$57.9 million), compared with income tax
benefit of RMB299.9 million in
2020.
Net income attributable to X Financial
shareholders in 2021 was RMB825.4 million (US$129.5 million), compared with net loss
attributable to X Financial shareholders of RMB1,308.5 million in 2020.
Non-GAAP adjusted net income attributable to X Financial
shareholders in 2021 was RMB913.8 million (US$143.4
million), compared with Non-GAAP adjusted net loss
attributable to X Financial shareholders of RMB1,228.4 million in 2020.
Net income per basic and diluted ADS in
2021 was RMB15.06 (US$2.36), and RMB14.70 (US$2.31), compared with net loss
per basic and diluted ADS of RMB24.42
and RMB24.42, respectively, in
2020.
Non-GAAP adjusted net income per basic and diluted
ADS in 2021 was RMB16.68 (US$2.62), and RMB16.26 (US$2.55), compared with Non-GAAP
adjusted net loss per basic and diluted ADS of RMB22.92 and RMB22.92, respectively, in 2020.
Cash and cash equivalents was RMB584.8 million (US$91.8 million) as of December 31, 2021, compared with RMB746.4 million as of December 31, 2020.
Share Repurchase Plan
The board of directors of the Company has approved a share
repurchase plan under which the Company may repurchase up to
US$15 million worth of its Class A
ordinary shares in the form of American depositary shares ("ADSs")
over the next eighteen months, effective until September, 2023.
Under the share repurchase plan, the repurchase may be made from
time to time through various means, including open market
transactions, privately negotiated transactions, and through other
legally permissible means, depending on market conditions and in
accordance with applicable rules and regulations. The manner,
timing and amount of any share repurchases will be determined by
the Company's management in its discretion based on its evaluation
of various factors. The Company expects to fund repurchases out of
its existing cash balance.
Business Outlook
The Company expects total loan amount facilitated and provided
for the first quarter of 2022 to be between RMB15.0 billion and RMB15.4 billion, and the range of increment in
total loan amount facilitated and provided for 2022 to be from 15%
to 25%. 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 31, 2022 (7:00 PM Beijing / Hong Kong Time on the same
day).
Dial-in details for the earnings conference call are as
follows:
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United
States:
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1-888-346-8982
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Hong Kong:
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852-301-84992
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Mainland
China:
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4001-201203
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International:
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1-412-902-4272
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Passcode:
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X
Financial
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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 April 7,
2022:
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United
States:
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1-877-344-7529
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International:
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1-412-317-0088
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Passcode:
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1182493
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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 provide
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, (ii) adjusted net income
attributable to X Financial shareholders, (iii) adjusted net income
per basic ADS, and (iv) adjusted net income per diluted ADS, each
of which excludes income (loss) from financial investments and
share-based compensation expense. These non-GAAP financial
measures are not defined under U.S. GAAP and are not presented
in accordance with U.S. GAAP. These non-GAAP financial measures
have limitations as analytical tools, and when assessing our
operating performance, investors should not consider them in
isolation, or as a substitute for the financial information
prepared and presented in accordance with U.S. GAAP.
We mitigate these limitations by reconciling the non-GAAP
financial measures to the most directly comparable U.S. GAAP
financial measures, which should be considered when evaluating our
performance. We encourage you to review our financial information
in its entirety and not rely on a single financial measure.
For more information on these non-GAAP financial measures,
please see the table captioned "Reconciliations of GAAP and
Non-GAAP results" set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at specified rates solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
U.S. dollars are made at a rate of RMB6.3726 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,
2021.
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
following: 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.
For more information, please contact:
X Financial
Mr. Frank Fuya Zheng
E-mail: ir@xiaoying.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: eyuan@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
|
X
Financial
|
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except for share and per share data)
|
As of December 31,
2020
|
As of December 31,
2021
|
|
RMB
|
RMB
|
|
USD
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
746,388
|
584,762
|
|
91,762
|
|
Restricted
cash
|
852,134
|
407,276
|
|
63,910
|
|
Accounts
receivable and contract assets, net
|
413,307
|
747,480
|
|
117,296
|
|
Loans
receivable from Xiaoying Credit Loans and
Revolving Loans, net
|
1,236,026
|
2,484,073
|
|
389,805
|
|
Loans at fair
value
|
1,585,732
|
389,679
|
|
61,149
|
|
Deposits to
institutional cooperators, net
|
907,923
|
1,500,407
|
|
235,447
|
|
Prepaid
expenses and other current assets, net
|
403,779
|
213,127
|
|
33,444
|
|
Financial
guarantee derivative
|
297,928
|
11,817
|
|
1,854
|
|
Deferred tax
assets, net
|
605,653
|
274,869
|
|
43,133
|
|
Long-term
investments
|
295,615
|
560,038
|
|
87,882
|
|
Property and
equipment, net
|
11,137
|
6,188
|
|
971
|
|
Intangible
assets, net
|
37,440
|
36,817
|
|
5,777
|
|
Loan receivable
from Xiaoying Housing Loans, net
|
47,490
|
12,083
|
|
1,896
|
|
Financial
investments[7]
|
6,000
|
82,844
|
|
13,000
|
|
Other
non-current assets
|
51,458
|
31,277
|
|
4,908
|
|
TOTAL
ASSETS
|
7,498,010
|
7,342,737
|
|
1,152,234
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Payable to
investors at fair value
|
1,914,184
|
462,714
|
|
72,610
|
|
Payable to
institutional funding partners
|
1,460,395
|
1,487,379
|
|
233,402
|
|
Guarantee
liabilities
|
9,790
|
-
|
|
-
|
|
Financial
guarantee derivative
|
130,442
|
565,953
|
|
88,810
|
|
Short-term bank
borrowings
|
350,545
|
166,500
|
|
26,127
|
|
Accrued payroll
and welfare
|
34,781
|
44,605
|
|
6,999
|
|
Other tax
payable
|
73,077
|
219,544
|
|
34,452
|
|
Income tax
payable
|
75,917
|
117,148
|
|
18,383
|
|
Deposit payable
to channel cooperators
|
21,472
|
21,012
|
|
3,297
|
|
Accrued
expenses and other current liabilities
|
323,748
|
268,967
|
|
42,207
|
|
Other
non-current liabilities
|
27,615
|
12,019
|
|
1,886
|
|
TOTAL
LIABILITIES
|
4,421,966
|
3,365,841
|
|
528,173
|
|
|
|
|
|
|
Commitments
and Contingencies
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Common
shares
|
203
|
207
|
|
32
|
|
Additional
paid-in capital
|
3,068,045
|
3,159,523
|
|
495,798
|
|
Retained
earnings (accumulated deficit)
|
(14,551)
|
810,856
|
|
127,241
|
|
Other
comprehensive income
|
21,059
|
6,310
|
|
990
|
|
Total X
Financial shareholders' equity
|
3,074,756
|
3,976,896
|
|
624,061
|
|
Non-controlling
interests
|
1,288
|
-
|
|
-
|
|
TOTAL
EQUITY
|
3,076,044
|
3,976,896
|
|
624,061
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
7,498,010
|
7,342,737
|
|
1,152,234
|
|
|
|
|
|
|
|
|
|
|
|
[7] During
the year ended December 31, 2021, the Company corrected an
immaterial error in its previously issued unaudited
condensed consolidated financial statements related to the
measurement of the Company's financial investments. In line
with
the correction, net income, non-GAAP adjusted net income for the
nine months ended September 30, 2021 and total assets
as of September 30, 2021 have been revised from the versions
previously disclosed. However, the effect of this amendment
on the Company's financial results has been immaterial in the past
quarters.
|
|
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)
|
2020
|
2021
|
2021
|
|
2020
|
2021
|
2021
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
Loan
facilitation service-Direct Model
|
472,566
|
487,774
|
76,542
|
|
1,266,533
|
2,545,432
|
399,434
|
|
Loan
facilitation service-Intermediary Model
|
183
|
-
|
-
|
|
41,373
|
161
|
25
|
|
Post-origination service
|
41,390
|
94,767
|
14,871
|
|
203,842
|
315,590
|
49,523
|
|
Financing
income
|
171,692
|
219,094
|
34,381
|
|
612,863
|
671,901
|
105,436
|
|
Other
revenue
|
30,466
|
21,763
|
3,415
|
|
68,347
|
93,381
|
14,654
|
|
Total net
revenue
|
716,297
|
823,398
|
129,209
|
|
2,192,958
|
3,626,465
|
569,072
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
|
Origination and
servicing
|
550,726
|
385,797
|
60,540
|
|
2,071,506
|
1,963,006
|
308,038
|
|
General and
administrative
|
36,380
|
62,208
|
9,762
|
|
179,225
|
187,859
|
29,479
|
|
Sales and
marketing
|
4,858
|
5,318
|
835
|
|
35,629
|
20,830
|
3,269
|
|
(Reversal of)
provision for accounts receivable and
contract assets
|
(13,236)
|
19,529
|
3,065
|
|
121,485
|
77,248
|
12,122
|
|
Provision for
loans receivable
|
33,703
|
40,322
|
6,327
|
|
245,204
|
76,017
|
11,929
|
|
(Reversal of)
provision for contingent guarantee
liabilities
|
(1,271)
|
-
|
-
|
|
881
|
(24)
|
(4)
|
|
(Reversal of)
provision for credit losses on deposits
to institutional cooperators
|
970,318
|
(509)
|
(80)
|
|
970,318
|
(8,291)
|
(1,301)
|
|
Reversal of
provision for credit losses for other
financial assets
|
(7,854)
|
(841)
|
(132)
|
|
(975)
|
(1,223)
|
(192)
|
|
Total
operating costs and expenses
|
1,573,624
|
511,824
|
80,317
|
|
3,623,273
|
2,315,422
|
363,340
|
|
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
(857,327)
|
311,574
|
48,892
|
|
(1,430,315)
|
1,311,043
|
205,732
|
|
Interest income
(expense), net
|
5,735
|
3,720
|
584
|
|
21,724
|
19,709
|
3,093
|
|
Foreign
exchange gain
|
6,488
|
3,907
|
613
|
|
15,399
|
5,147
|
808
|
|
Fair value
adjustments related to Consolidated
Trusts
|
(13,965)
|
(7,158)
|
(1,123)
|
|
(57,380)
|
(7,267)
|
(1,140)
|
|
Change in fair
value of financial guarantee derivative
|
(20,049)
|
(26,681)
|
(4,187)
|
|
(163,670)
|
(170,339)
|
(26,730)
|
|
Other income
(expense), net
|
1,920
|
15,761
|
2,473
|
|
12,709
|
32,506
|
5,101
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes and gain
(loss) from equity in affiliates
|
(877,198)
|
301,123
|
47,252
|
|
(1,601,533)
|
1,190,799
|
186,864
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
226,968
|
(154,169)
|
(24,192)
|
|
299,878
|
(368,734)
|
(57,862)
|
|
Gain (loss)
from equity in affiliates, net of tax
|
(5,242)
|
(1,433)
|
(225)
|
|
(6,806)
|
3,342
|
524
|
|
Net income
(loss)
|
(655,472)
|
145,521
|
22,835
|
|
(1,308,461)
|
825,407
|
129,526
|
|
Less: net
income attributable to non-controlling
interests
|
-
|
-
|
-
|
|
41
|
-
|
-
|
|
Net income
(loss) attributable to X Financial
shareholders
|
(655,472)
|
145,521
|
22,835
|
|
(1,308,502)
|
825,407
|
129,526
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(655,472)
|
145,521
|
22,835
|
|
(1,308,461)
|
825,407
|
129,526
|
|
Other
comprehensive income, net of tax of nil:
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
(29,435)
|
(10,234)
|
(1,606)
|
|
(46,042)
|
(14,749)
|
(2,314)
|
|
Comprehensive income
(loss)
|
(684,907)
|
135,287
|
21,229
|
|
(1,354,503)
|
810,658
|
127,212
|
|
Less:
comprehensive income attributable to non-
controlling interests
|
-
|
-
|
-
|
|
41
|
-
|
-
|
|
Comprehensive income (loss) attributable
to
X Financial shareholders
|
(684,907)
|
135,287
|
21,229
|
|
(1,354,544)
|
810,658
|
127,212
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share—basic
|
(2.04)
|
0.44
|
0.07
|
|
(4.07)
|
2.51
|
0.39
|
|
Net income
(loss) per share—diluted
|
(2.04)
|
0.43
|
0.07
|
|
(4.07)
|
2.45
|
0.38
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per ADS—basic
|
(12.24)
|
2.64
|
0.41
|
|
(24.42)
|
15.06
|
2.36
|
|
Net income
(loss) per ADS—diluted
|
(12.24)
|
2.58
|
0.40
|
|
(24.42)
|
14.70
|
2.31
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares
outstanding—basic
|
322,041,770
|
330,853,651
|
330,853,651
|
|
321,236,089
|
329,230,273
|
329,230,273
|
|
Weighted
average number of ordinary shares
outstanding—diluted
|
322,041,770
|
338,504,460
|
338,504,460
|
|
321,236,089
|
336,881,082
|
336,881,082
|
|
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)
|
2020
|
2021
|
2021
|
|
2020
|
2021
|
2021
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
|
GAAP net income
(loss)
|
(655,472)
|
145,521
|
22,835
|
|
(1,308,461)
|
825,407
|
129,526
|
|
Add: Share-based
compensation expenses (net of tax of nil)
|
24,692
|
37,429
|
5,873
|
|
80,140
|
88,435
|
13,877
|
|
Non-GAAP adjusted
net income (loss)
|
(630,780)
|
182,950
|
28,708
|
|
(1,228,321)
|
913,842
|
143,403
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to X Financial shareholders
|
(655,472)
|
145,521
|
22,835
|
|
(1,308,502)
|
825,407
|
129,526
|
|
Add: Share-based
compensation expenses (net of tax of nil)
|
24,692
|
37,429
|
5,873
|
|
80,140
|
88,435
|
13,877
|
|
Non-GAAP adjusted
net income (loss) attributable to X
Financial shareholders
|
(630,780)
|
182,950
|
28,708
|
|
(1,228,362)
|
913,842
|
143,403
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjusted net income (loss) per share—basic
|
(1.96)
|
0.55
|
0.09
|
|
(3.82)
|
2.78
|
0.44
|
|
Non-GAAP
adjusted net income (loss) per share—diluted
|
(1.96)
|
0.54
|
0.08
|
|
(3.82)
|
2.71
|
0.43
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjusted net income (loss) per ADS—basic
|
(11.76)
|
3.30
|
0.52
|
|
(22.92)
|
16.68
|
2.62
|
|
Non-GAAP
adjusted net income (loss) per ADS—diluted
|
(11.76)
|
3.24
|
0.51
|
|
(22.92)
|
16.26
|
2.55
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares outstanding
—basic
|
322,041,770
|
330,853,651
|
330,853,651
|
|
321,236,089
|
329,230,273
|
329,230,273
|
|
Weighted
average number of ordinary shares outstanding
—diluted
|
322,041,770
|
338,504,460
|
338,504,460
|
|
321,236,089
|
336,881,082
|
336,881,082
|
View original
content:https://www.prnewswire.com/news-releases/x-financial-reports-fourth-quarter-and-fiscal-year-2021-unaudited-financial-results-301513946.html
SOURCE X Financial