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 per basic share, and (v) adjusted net income per diluted share, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments 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 "Reconciliations of GAAP and Non-GAAP results" set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 7.0176 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 September 30, 2024.

Disclaimer

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the followings: the Company's goals and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace's products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is current as of the date of this announcement, and the Company does not undertake any obligation to update such information, except as required under applicable law.

Use of Projections

This announcement also contains certain financial forecasts (or guidance) with respect to the Company's projected financial results. The Company's independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections or guidance for the purpose of their inclusion in this announcement, and accordingly, they did not express an opinion or provide any other form assurance with respect thereto for the purpose of this announcement. This guidance should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could actual results to differ materially from those contained in the prospective financial information. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company, or that actual results will not differ materially from those set forth in the prospective financial information. Inclusion of the prospective financial information in this announcement should not be regarded as a representation by any person that the results contained in the prospective financial information will actually be achieved. You should review this information together with the Company's historical information.

For more information, please contact:

X Financial

Mr. Frank Fuya Zheng

E-mail: ir@xiaoying.com

Christensen IR

In China

Mr. Rene Vanguestaine

Phone: +86-178-1749 0483

E-mail: rene.vanguestaine@christensencomms.com

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.com

 
X Financial 
Unaudited 
Condensed 
Consolidated 
Balance Sheets 
 
(In thousands, 
except for share 
and per share       As of December 31,     As of September     As of September 
data)                             2023            30, 2024            30, 2024 
------------------  ------------------  ------------------  ------------------ 
                                   RMB                 RMB                 USD 
 ASSETS 
 Cash and cash 
  equivalents                1,195,352           1,044,144             148,789 
 Restricted cash, 
  net                          749,070             489,372              69,735 
 Accounts 
  receivable and 
  contract assets, 
  net                        1,659,588           1,709,428             243,592 
 Loans receivable 
  from Credit 
  Loans and other 
  loans, net                 4,947,833           4,938,195             703,687 
 Deposits to 
  institutional 
  cooperators, 
  net                        1,702,472           1,739,539             247,882 
 Prepaid expenses 
  and other 
  current assets, 
  net                           48,767              40,824               5,817 
 Deferred tax 
  assets, net                  135,958             192,644              27,452 
 Long term 
  investments                  493,411             491,782              70,078 
 Property and 
  equipment, net                 8,642              11,566               1,648 
 Intangible 
  assets, net                   36,810              36,236               5,164 
 Loan receivable 
  from Housing 
  Loans, net                     8,657               6,494                 925 
 Financial 
  investments                  608,198             866,804             123,519 
 Other non-current 
  assets                        55,265              53,259               7,589 
 TOTAL ASSETS               11,650,023          11,620,287           1,655,877 
 
 LIABILITIES 
 Payable to 
  investors and 
  institutional 
  funding partners 
  at amortized 
  cost                       3,584,041           2,406,552             342,931 
 Guarantee 
  liabilities                   61,907             102,638              14,626 
 Deferred 
  guarantee 
  income                        46,597             106,054              15,113 
 Short-term 
  borrowings                   565,000             433,500              61,773 
 Accrued payroll 
  and welfare                   86,771              93,047              13,259 
 Other tax payable             289,819             292,939              41,743 
 Income tax 
  payable                      446,500             496,489              70,749 
 Accrued expenses 
  and other 
  current 
  liabilities                  595,427             732,591             104,394 
 Dividend payable               59,226                   -                   - 
 Other non-current 
  liabilities                   37,571              30,915               4,405 
 Deferred tax 
  liabilities                   30,040              29,003               4,133 
 TOTAL LIABILITIES           5,802,899           4,723,728             673,126 
 
 Commitments and 
 Contingencies 
 Equity: 
 Common shares                     207                 207                  29 
 Treasury stock              (111,520)           (155,007)            (22,088) 
 Additional 
  paid-in capital            3,196,942           3,194,909             455,271 
 Retained earnings           2,692,018           3,788,885             539,912 
 Other 
  comprehensive 

(MORE TO FOLLOW) Dow Jones Newswires

November 26, 2024 16:50 ET (21:50 GMT)