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

SHENZHEN, China, March 19, 2025 /PRNewswire/ -- X Financial (NYSE:XYF) (the "Company" or "we"), a leading online personal finance company in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter and Fiscal Year 2024 Operational Highlights

Three Months Ended December31, 2023

Three Months Ended September 30, 2024

Three Months Ended December 31, 2024

Twelve MonthsEnded December 31, 2023

Twelve MonthsEnded December 31, 2024

QoQ

YoY

YoY

Total loan amount facilitated and originated (RMB in million)

26,134

28,338

32,297

14.0 %

23.6 %

105,557

104,889

(0.6 %)

Number of active borrowers

1,603,760

1,965,248

2,120,068

7.9 %

32.2 %

4,495,997

5,231,887

16.4 %

 

The total loan amount facilitated and originated[1] in the fourth quarter of 2024 was RMB32,297 million, compared with RMB26,134 million in the same period of 2023.

The total loan amount facilitated and originated in 2024 was RMB104,889 million, compared with RMB105,557 million in 2023.

The total number of active borrowers[2] was 2,120,068 in the fourth quarter of 2024, compared with 1,603,760 in the same period of 2023.

The total number of active borrowers was 5,231,887 in 2024, compared with 4,495,997 in 2023.

 

As of December 31, 2023

As of September 30, 2024

As of December 31, 2024

Total outstanding loan balance (RMB in million)

48,847

45,766

52,327

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

1.57 %

1.02 %

1.17 %

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

3.12 %

3.22 %

2.48 %

 

The total outstanding loan balance[3] as of December 31, 2024 was RMB52,327 million, compared with RMB48,847 million as of December 31, 2023.

The delinquency rate for all outstanding loans that are past due for 31-60 days[4] as of December 31, 2024 was 1.17%, compared with 1.57% as of December 31, 2023.

The delinquency rate for all outstanding loans that are past due for 91-180 days[5] as of December 31, 2024 was 2.48%, compared with 3.12% as of December 31, 2023.

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

[2] Represents borrowers who made at least one transaction on the Company's platform during the relevant period.

[3] Represents the total amount of loans outstanding for loans that the Company facilitated and originated at the end of the relevant period. Loans that are delinquent for more than 60 days are excluded in the outstanding loan balance, except for Xiaoying Housing Loans. As Xiaoying Housing Loans is a secured loan product and the Company is entitled to payment by exercising its rights to the collateral, the Company does not exclude Xiaoying Housing Loans delinquent for more than 60 days in the outstanding loan balance.

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

[5] To make the delinquency rate by balance comparable to the peers, the Company also defines the delinquency rate as the balance of the outstanding principal and accrued outstanding interest for Xiaoying Credit Loans that were 91 to 180 days past due as a percentage of the total balance of outstanding principal and accrued outstanding interest for the Xiaoying Credit Loans that the Company facilitated and originated as of a specific date. Xiaoying Credit Loans that are delinquent for more than 180 days are excluded when calculating the denominator.

Fourth Quarter 2024 Financial Highlights

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

Three Months Ended December 31, 2023

Three Months Ended September 30, 2024

Three Months Ended December 31, 2024

QoQ

YoY

 RMB

 RMB

 RMB

Total net revenue

1,192,664

1,582,497

1,708,722

8.0 %

43.3 %

Total operating costs and expenses

(938,472)

(1,073,533)

(1,183,510)

10.2 %

26.1 %

Income from operations

254,192

508,964

525,212

3.2 %

106.6 %

Net income

188,968

375,840

385,626

2.6 %

104.1 %

Non-GAAP adjusted net income

230,782

433,625

408,022

(5.9 %)

76.8 %

Net income per ADS—basic

3.90

7.86

8.22

4.6 %

110.8 %

Net income per ADS—diluted

3.84

7.74

8.04

3.9 %

109.4 %

Non-GAAP adjusted net income per ADS—basic

4.74

9.12

8.70

(4.6 %)

83.5 %

Non-GAAP adjusted net income per ADS—diluted

4.68

8.88

8.46

(4.7 %)

80.8 %

 

Total net revenue in the fourth quarter of 2024 was RMB1,708.7 million (US$234.1 million), representing an increase of 43.3% from RMB1,192.7 million in the same period of 2023.

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

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

Non-GAAP[6] adjusted net income in the fourth quarter of 2024 was RMB408.0 million (US$55.9 million), compared with RMB230.8 million in the same period of 2023.

Net income per basic and diluted American depositary share ("ADS") [7] in the fourth quarter of 2024 was RMB8.22 (US$1.13) and RMB8.04 (US$1.10), compared with RMB3.90 and RMB3.84, respectively, in the same period of 2023.

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

[6] The Company uses in this press release the following non-GAAP financial measures: (i) adjusted net income (loss), (ii) adjusted net income (loss) per basic ADS, (iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net income (loss) per basic share, and (v) adjusted net income (loss) per diluted share, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments, gain (loss) from financial investments at equity method and impairment losses on long-term investments. For more information on non-GAAP financial measure, please see the section of "Use of Non-GAAP Financial Measures Statement" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

[7] Each American depositary share ("ADS") represents six Class A ordinary shares.

Fiscal Year 2024 Financial Highlights

 Twelve Months Ended December 31,

(In thousands, except for share and per sharedata)

2023

2024

YoY

 RMB

 RMB

Total net revenue

4,814,884

5,871,782

22.0 %

Total operating costs and expenses

(3,352,767)

(3,998,013)

19.2 %

Income from operations

1,462,117

1,873,769

28.2 %

Net income

1,186,794

1,539,906

29.8 %

Non-GAAP adjusted net income

1,276,696

1,538,512

20.5 %

Net income per ADS—basic

24.72

31.98

29.4 %

Net income per ADS—diluted

24.48

31.50

28.7 %

Non-GAAP adjusted net income per ADS—basic

26.58

31.98

20.3 %

Non-GAAP adjusted net income per ADS—diluted

26.34

31.44

19.4 %

 

Total net revenue in 2024 was RMB5,871.8 million (US$804.4 million), representing an increase of 22.0% from RMB4,814.9 million in 2023.

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

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

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

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

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

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

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

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

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

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

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

Fourth Quarter 2024 Financial Results

Total net revenue in the fourth quarter of 2024 increased by 43.3% to RMB1,708.7 million (US$234.1 million) from RMB1,192.7 million in the same period of 2023, primarily due to growth in various disaggregated revenue compared with the same period of 2023. Please refer to analysis of disaggregation of revenue below.

 Three Months Ended December 31,

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

2023

2024

YoY

 RMB

 % of Revenue

 RMB

 % of Revenue

Loan facilitation service

615,482

51.6 %

877,664

51.4 %

42.6 %

Post-origination service

166,807

14.0 %

266,018

15.6 %

59.5 %

Financing income

307,692

25.8 %

350,599

20.4 %

13.9 %

Guarantee income

16,576

1.4 %

69,649

4.1 %

320.2 %

Other revenue

86,107

7.2 %

144,792

8.5 %

68.2 %

Total net revenue

1,192,664

100.0 %

1,708,722

100.0 %

43.3 %

 

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

Post-origination service fees in the fourth quarter of 2024 increased by 59.5% to RMB266.0 million (US$36.4 million) from RMB166.8 million in the same period of 2023, primarily due to the cumulative effect of increased volume of loans facilitated in the previous quarters. Revenues from post-origination services are recognized on a straight-line basis over the term of the underlying loans as the services are being provided.

Financing income in the fourth quarter of 2024 increased by 13.9% to RMB350.6 million (US$48.0 million) from RMB307.7 million in the same period of 2023, primarily due to an increase in average loan balances held by the Company compared with the same period of 2023.

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

Other revenue in the fourth quarter of 2024 increased by 68.2% to RMB144.8 million (US$19.8 million), compared with RMB86.1 million in the same period of 2023, primarily due to an increase in referral service fee for introducing borrowers to other platforms.

Origination and servicing expenses in the fourth quarter of 2024 increased by 4.3% to RMB439.0 million (US$60.1 million) from RMB421.0 million in the same period of 2023, primarily due to the increase in collection expenses resulting from the cumulative effect of increased volume of loans facilitated and originated in the previous quarters compared with the same period of 2023.

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

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

Provision for contingent guarantee liabilities in the fourth quarter of 2024 was RMB116.1 million (US$15.9 million), compared with ...