Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x
Form 40-F ¨
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Exhibit 99.1
X Financial Reports Second Quarter
2026 Unaudited Financial Results
SHENZHEN, China, August 24,
2026 /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 second quarter ended June 30, 2026.
Second Quarter 2026 Operational
Highlights
| · | Total
loan amount facilitated and originated1 in the second quarter of 2026 was
RMB11.63 billion, down 20.5% from RMB14.63 billion in the first quarter of 2026, and
down 70.2% from RMB38.99 billion in the same period of 2025. The quarter-over-quarter and
year-over-year declines reflect the Company’s continued conservative origination approach
and tighter borrower selection amid a challenging operating environment. |
| · | Total
outstanding loan balance2 at the end of the second quarter of 2026 was RMB24.97
billion, down 29.2% from RMB35.28 billion at the end of the first quarter of 2026 and
down 61.5% from RMB64.91 billion as of the same period of 2025. |
| · | The
number of loans the Company facilitated and originated in the second quarter of 2026
was approximately 0.91 million, a decrease of 26.6% quarter-over-quarter and 75.4%
year-over-year. The average loan amount per transaction in the second quarter of 2026 was
RMB12,712, an increase of 8.3% quarter-over-quarter and 21.3% year-over-year. The lower transaction
count was partially offset by a higher average loan amount, reflecting the smaller origination
base and a shift in transaction mix. |
| · | Number
of active borrowers3 in the second quarter of 2026 was 720,258, down
24.7% from 956,520 in the first quarter of 2026 and down 74.8% from 2,853,063 in the same
period of 2025, reflecting the reduced scale of quarterly origination and the Company’s
continued focus on credit quality. |
| · | Cumulative
number of active borrowers4 reached 20.46 million as of June 30,
2026, an increase of 9.1% from 18.75 million as of the same period of 2025. |
| · | The
delinquency rate for all outstanding loans that are past due for 31-60 days5
was 1.73% as of June 30, 2026 (compared with 2.61% at the end of the first quarter
of 2026 and 1.16% as of the same period of 2025). The delinquency rate for all outstanding
loans that are past due 91-180 days6 was 9.09% as of June 30, 2026
(compared with 9.95% at the end of the first quarter of 2026 and 2.91% as of the same period
of 2025). Both delinquency rates improved sequentially, but remained materially above prior-year
levels, indicating that credit pressure remained elevated in the seasoned portfolio. |
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 that were 31 to 60 days past due as a percentage of the total balance of
outstanding principal that the Company facilitated and originated as
of a specific date. 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.
Second Quarter 2026 Operational Highlights
| | |
Three
Months Ended
June 30, 2025 | | |
Three
Months Ended
March 31, 2026 | | |
Three
Months Ended
June 30, 2026 | | |
QoQ | | |
YoY | |
| Total loan amount
facilitated and originated (RMB in million) | |
| 38,994 | | |
| 14,626 | | |
| 11,628 | | |
| (20.5 | )% | |
| (70.2 | )% |
| Number of active borrowers | |
| 2,853,063 | | |
| 956,520 | | |
| 720,258 | | |
| (24.7 | )% | |
| (74.8 | )% |
| | |
As
of June 30, 2025 | | |
As
of March 31, 2026 | | |
As
of June 30, 2026 | |
| Total outstanding
loan balance (RMB in million) | |
| 64,911 | | |
| 35,281 | | |
| 24,969 | |
| Delinquency rates for all outstanding
loans that are past due for 31-60 days | |
| 1.16 | % | |
| 2.61 | % | |
| 1.73 | % |
| Delinquency rates for all outstanding
loans that are past due for 91-180 days | |
| 2.91 | % | |
| 9.95 | % | |
| 9.09 | % |
Second Quarter 2026 Financial Highlights
| · | Total
net revenue in the second quarter of 2026 was RMB993.6 million (US$146.4 million),
representing a decrease of 56.3% from RMB2.27 billion in the same period of
2025 and a decrease of 15.5% from the previous quarter. The year-over-year decline
was primarily driven by substantially lower loan facilitation service fees following the
reduction in origination volume, partially offset by higher guarantee income. |
| · | Income
from operations in the second quarter of 2026 was RMB194.9 million (US$28.7 million),
a decrease of 71.1% compared to RMB675.1 million in the same period of 2025, but an increase
of 38.6% from the previous quarter. The year-over-year decline was primarily driven by a
RMB1.17 billion reduction in loan facilitation service fees, or 85.5%, partially offset by
a RMB606.8 million reduction in borrower acquisition and marketing expenses, or 80.2%, and
a RMB104.8 million reduction in aggregate credit-related provisions, or 36.4%. As a result,
operating margin7 decreased to 19.6% from 29.7% in the same period of
2025, while improving from 12.0% in the previous quarter. |
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 that were 91 to 180 days past due as a percentage of the total balance of outstanding principal that the Company facilitated
and originated as of a specific date. Loans that are delinquent for more than 180 days are excluded when calculating the denominator.
7
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.
| · | Net
income in the second quarter of 2026 was RMB47.0 million (US$6.9 million), compared
with RMB528.0 million in the same period of 2025, a decrease of 91.1% year-over-year.
Net income was primarily affected by the substantially lower operating contribution, partially
offset by lower operating costs and credit-related provisions. |
| · | Non-GAAP8
adjusted net income in the second quarter of 2026, excluding share-based compensation
and certain investment-related items, was RMB165.8 million (US$24.4 million), compared
with RMB593.2 million in the same period of 2025 and RMB81.2 million in the previous quarter.
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 second
quarter of 2026 was RMB1.26 and RMB1.26 (US$0.19 and US$0.19), respectively, compared
with RMB12.60 and RMB12.00 in the same period of 2025. |
| · | Non-GAAP
adjusted net income per basic and diluted ADS in the second quarter of 2026 was RMB4.44
and RMB4.38 (US$0.65 and US$0.65), respectively, compared with RMB14.16 and RMB13.50
in the same period of 2025. |
Each ADS represents six
Class A ordinary shares.
Second Quarter 2026 GAAP and Non-GAAP
Financial Summary
| (In
thousands, except for share and per share data) | |
Three
Months Ended
June 30, 2025 | | |
Three
Months Ended
March 31, 2026 | | |
Three
Months Ended
June 30, 2026 | | |
QoQ | | |
YoY | |
| | |
| RMB | | |
| RMB | | |
| RMB | | |
| | | |
| | |
| Total net revenue | |
| 2,273,123 | | |
| 1,176,139 | | |
| 993,581 | | |
| (15.5 | )% | |
| (56.3 | )% |
| Total operating costs and expenses | |
| (1,598,067 | ) | |
| (1,035,481 | ) | |
| (798,633 | ) | |
| (22.9 | )% | |
| (50.0 | )% |
| Income from operations | |
| 675,056 | | |
| 140,658 | | |
| 194,948 | | |
| 38.6 | % | |
| (71.1 | )% |
| Net income | |
| 528,016 | | |
| 37,947 | | |
| 46,983 | | |
| 23.8 | % | |
| (91.1 | )% |
| Non-GAAP adjusted net income | |
| 593,215 | | |
| 81,180 | | |
| 165,837 | | |
| 104.3 | % | |
| (72.0 | )% |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income per ADS—basic | |
| 12.60 | | |
| 0.96 | | |
| 1.26 | | |
| 31.3 | % | |
| (90.0 | )% |
| Net income per ADS—diluted | |
| 12.00 | | |
| 0.96 | | |
| 1.26 | | |
| 31.3 | % | |
| (89.5 | )% |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP adjusted net income
per ADS—basic | |
| 14.16 | | |
| 2.10 | | |
| 4.44 | | |
| 111.4 | % | |
| (68.6 | )% |
| Non-GAAP adjusted net income
per ADS—diluted | |
| 13.50 | | |
| 2.04 | | |
| 4.38 | | |
| 114.7 | % | |
| (67.6 | )% |
Mr. Kent Li, President of X
Financial, commented: "In the second quarter of 2026, we facilitated and originated RMB11.6 billion in loans, a decline of 20.5%
from the prior quarter and 70.2% year-over-year. Borrower activity continued to contract, with active borrowers declining to approximately
720,258, down 74.8% from a year ago, while the average loan amount increased to RMB12,712. The 31–60 day delinquency rate decreased
to 1.73% from 2.61% in the prior quarter, and the 91–180 day rate eased to 9.09% from 9.95%. These sequential improvements are
constructive, but both delinquency rates remained above prior-year levels and the 91–180 day rate remained elevated. We therefore
continue to prioritize disciplined underwriting, collection effectiveness, and conservative capital deployment. While the business remains
under pressure from lower origination volumes and a challenging credit environment, our focus remains on preserving balance sheet resilience
and operating flexibility."
8
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.
Mr. Frank Fuya Zheng, Chief
Financial Officer of X Financial, added: " In the second quarter of 2026, total net revenue was RMB993.6 million, a decrease
of 56.3% from the same period last year and 15.5% sequentially. Net income was RMB47.0 million and non-GAAP adjusted net income was RMB165.8
million, both higher than the prior quarter but substantially below the prior-year period. Basic earnings per ADS were RMB1.26, and non-GAAP
adjusted earnings per ADS were RMB4.44. Operating margin7 improved to 19.6% from 12.0% in the prior quarter, but remained
below the 29.7% recorded in the same period of 2025. We will continue to manage capital conservatively, maintain cost discipline, and
preserve liquidity as we navigate the evolving regulatory and operating environment."
Share Repurchase Plans &
Declaration of Semi-Annual Dividend:
| · | Capital
Return to Shareholders: From January 1, 2026 through August 14, 2026, X Financial
repurchased an aggregate of approximately 2.63 million ADSs, for a total consideration
of approximately US$12.49 million under its share repurchase programs. The Company
now has approximately US$35.50 million remaining under its existing US$100 million
share repurchase program, which is effective through November 30, 2026. This program
reflects the Company’s commitment to returning capital to shareholders and enhancing
long-term shareholder value, subject to ongoing assessment of market and regulatory conditions.
Repurchases under the program remain subject to market conditions and other factors and may
be modified or suspended at management’s discretion. |
| · | Declaration
of Semi-Annual Dividend: Pursuant to the semi-annual dividend policy, the Board today
approved the declaration and payment of a semi-annual dividend of US$0.28 per ADS (approximately
US$0.0467 per ordinary share). The holders of the Company's ordinary shares shown on the
Company's record at the close of trading on September 10, 2026 (U.S. Eastern Daylight
Time) will be entitled to the semi-annual dividend. These shareholders, including the Bank
of New York Mellon, the depositary of our ADS program (the “Depositary”), will
receive the payments of dividends on or about September 28, 2026. Dividends to the Company's
ADS holders will be paid by the Depositary on or after September 28, 2026, and the precise
timing of receipt will vary based on the processing efficiency of the respective holding
brokerage. |
Second Quarter 2026 Financial Results
Revenue Performance and Business
Drivers: Total net revenue in the second quarter of 2026 was RMB993.6 million (US$146.4 million), a decrease of 56.3%
from RMB2,273.1 million in the same period of 2025, and a decrease of 15.5% from the first quarter of 2026. The year-over-year
decline was mainly attributable to substantially lower loan facilitation volumes, which reduced loan facilitation service revenue and
post-origination service revenue, partially offset by higher guarantee income. The quarter-over-quarter decline reflected a further reduction
in origination and lower revenue across most principal business lines.
Revenue performance varied across business
lines in the second quarter of 2026. Loan facilitation service fees decreased 85.5% year-over-year to RMB198.6 million (US$29.3
million), primarily reflecting the sharp decline in the total loan amount facilitated compared with the same period of 2025. Post-origination
service fees decreased 41.2% to RMB159.6 million (US$23.5 million), consistent with lower new origination volumes and a
declining outstanding loan balance. Guarantee income increased 119.3% to RMB224.9 million (US$33.2 million), primarily
reflecting continued recognition of guarantee-related revenue from the existing guaranteed loan portfolio. Financing income decreased
13.2% to RMB277.7 million (US$40.9 million), while other revenue decreased 36.7% to RMB132.8 million (US$19.6 million).
Return on equity7 decreased to 2.4%, compared with 27.9% in the same period of 2025, primarily reflecting substantially lower
net income during the quarter.
Asset Quality: The 31–60
day delinquency rate was 1.73% as of June 30, 2026, compared with 2.61% at the end of the first quarter of 2026 and 1.16%
as of the same period of 2025. The 91–180 day delinquency rate was 9.09%, compared with 9.95% at the end of the first quarter of
2026 and 2.91% as of the same period of 2025. Provision for contingent guarantee liabilities decreased to RMB57.6 million, compared
with RMB200.0 million in the previous quarter and RMB207.4 million in the same period of 2025, reflecting a decline in the estimated
average loan loss rate during the quarter. Provision for credit losses for deposits and other financial assets increased to RMB95.3 million.
Aggregate credit-related provisions were RMB183.1 million, down 35.3% sequentially and 36.4% year-over-year. Overall, the sequential
improvement in delinquency rates and lower aggregate provisions was offset by credit pressure that remained elevated relative to the
prior-year period.
Profitability and Margins: Profitability
remained under pressure in the second quarter of 2026 as the reduction in revenue continued to weigh on earnings, although lower operating
expenses supported sequential improvement. Operating margin7 was 19.6%, compared with 29.7% in the same
period of 2025 and 12.0% in the first quarter of 2026. Total operating costs and expenses decreased 50.0% year-over-year and 22.9%
sequentially, primarily reflecting lower borrower acquisition and marketing expenses and lower aggregate credit-related provisions. Net
profit margin7 was 4.7%, compared with 23.2% in the same period of 2025 and 3.2% in the previous quarter.
Net income decreased 91.1% year-over-year to RMB47.0 million (US$6.9 million), but increased 23.8% sequentially. Net
income per basic ADS was RMB1.26 (US$0.19), up 31.3% sequentially and down 90.0% from a year ago. Non-GAAP adjusted
net income was RMB165.8 million, up 104.3% sequentially and down 72.0% year-over-year.
Funding and Liquidity: The Company
maintained a stable liquidity position in the second quarter of 2026 amid reduced origination activity. Cash and cash equivalents
totaled RMB1.13 billion (US$166.8 million) as of June 30, 2026, compared with RMB987.6 million as of December 31,
2025. Total restricted cash was RMB827.7 million (US$122.0 million), bringing total cash (including restricted) to approximately
RMB1.96 billion (US$288.8 million). Shareholders’ equity was RMB7.76 billion (US$1.14 billion). The equity-to-assets
ratio was approximately 64.1% as of June 30, 2026. Total assets were RMB12.10 billion (US$1.78 billion).
Regulatory Update: The regulatory
environment governing internet-based lending in the People’s Republic of China continued to evolve during the second quarter of
2026, with authorities maintaining heightened oversight across the consumer credit business chain. The Company continues to monitor these
developments closely; however, management has limited visibility into the ultimate scope and direction of implementation. If current
and emerging regulatory requirements are implemented as currently understood, the Company’s operating results may be materially
and adversely affected, and historical levels of profitability should not be assumed to be indicative of future performance.
Conference Call
X Financial’s
management team will host an earnings conference call at 8:30 AM U.S. Eastern Time on August 24, 2026 (8:30 PM Beijing / Hong Kong
Time on August 24, 2026).
Dial-in details
for the earnings conference call are as follows:
| United
States: |
1-888-346-8982 |
| Hong
Kong: |
800-905945 |
| 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 August 31 , 2026:
| United
States: |
1-855-669-9658 |
| International:
|
1-412-317-0088 |
| Passcode:
|
2955666 |
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 RMB6.7851 to US$1.00, the exchange rate in effect as of June 30, 2026, 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.
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, 2025 | | |
As
of
June 30, 2026 | | |
As of
June 30, 2026 | |
| | |
RMB | | |
RMB | | |
USD | |
| ASSETS | |
| | | |
| | | |
| | |
| Cash and cash equivalents | |
| 987,631 | | |
| 1,131,736 | | |
| 166,797 | |
| Restricted cash, net | |
| 1,145,962 | | |
| 827,667 | | |
| 121,983 | |
| Accounts receivable and contract assets, net | |
| 3,145,976 | | |
| 1,377,377 | | |
| 203,000 | |
| Loans receivable from Credit Loans and other loans, net | |
| 5,298,631 | | |
| 4,137,175 | | |
| 609,746 | |
| Deposits to institutional cooperators, net | |
| 1,713,593 | | |
| 882,907 | | |
| 130,124 | |
| Prepaid expenses and other current assets | |
| 43,547 | | |
| 36,215 | | |
| 5,337 | |
| Deferred tax assets, net | |
| 455,358 | | |
| 486,393 | | |
| 71,685 | |
| Long term investments | |
| 515,524 | | |
| 373,233 | | |
| 55,008 | |
| Property and equipment, net | |
| 23,900 | | |
| 24,505 | | |
| 3,612 | |
| Intangible assets, net | |
| 39,183 | | |
| 38,229 | | |
| 5,634 | |
| Financial investments | |
| 1,243,076 | | |
| 2,738,006 | | |
| 403,532 | |
| Other non-current assets | |
| 53,364 | | |
| 48,814 | | |
| 7,194 | |
| TOTAL ASSETS | |
| 14,665,745 | | |
| 12,102,257 | | |
| 1,783,652 | |
| | |
| | | |
| | | |
| | |
| LIABILITIES | |
| | | |
| | | |
| | |
| Payable to investors and institutional funding partners at amortized cost | |
| 3,054,982 | | |
| 1,583,818 | | |
| 233,426 | |
| Contingent guarantee liabilities | |
| 748,307 | | |
| 409,806 | | |
| 60,398 | |
| Deferred guarantee income | |
| 467,629 | | |
| 392,787 | | |
| 57,890 | |
| Financial guarantee derivative | |
| 15,426 | | |
| 12,194 | | |
| 1,797 | |
| Short-term borrowings | |
| 409,530 | | |
| 396,208 | | |
| 58,394 | |
| Accrued payroll and welfare | |
| 76,058 | | |
| 43,545 | | |
| 6,418 | |
| Other tax payable | |
| 221,940 | | |
| 108,620 | | |
| 16,007 | |
| Income tax payable | |
| 677,521 | | |
| 659,051 | | |
| 97,132 | |
| Accrued expenses and other current liabilities | |
| 1,053,071 | | |
| 688,895 | | |
| 101,531 | |
| Other non-current liabilities | |
| 34,807 | | |
| 28,904 | | |
| 4,260 | |
| Deferred tax liabilities | |
| 69,673 | | |
| 22,986 | | |
| 3,388 | |
| TOTAL LIABILITIES | |
| 6,828,944 | | |
| 4,346,814 | | |
| 640,641 | |
| | |
| | | |
| | | |
| | |
| Commitments and Contingencies | |
| | | |
| | | |
| | |
| Equity: | |
| | | |
| | | |
| | |
| Common shares (234,517,901 and 221,600,267 shares outstanding as of December 31, 2025
and June 30, 2026, respectively) | |
| 207 | | |
| 207 | | |
| 31 | |
| Treasury stock | |
| (967,773 | ) | |
| (1,040,284 | ) | |
| (153,319 | ) |
| Additional paid-in capital | |
| 3,256,349 | | |
| 3,259,861 | | |
| 480,444 | |
| Retained earnings | |
| 5,484,294 | | |
| 5,496,426 | | |
| 810,073 | |
| Other comprehensive income | |
| 63,724 | | |
| 39,233 | | |
| 5,782 | |
| TOTAL EQUITY | |
| 7,836,801 | | |
| 7,755,443 | | |
| 1,143,011 | |
| | |
| | | |
| | | |
| | |
| TOTAL LIABILITIES AND EQUITY | |
| 14,665,745 | | |
| 12,102,257 | | |
| 1,783,652 | |
X Financial
Unaudited Condensed Consolidated Statements of Comprehensive Income
| | |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| (In thousands, except for share and per share data) | |
2025 | | |
2026 | | |
2026 | | |
2025 | | |
2026 | | |
2026 | |
| | |
RMB | | |
RMB | | |
USD | | |
RMB | | |
RMB | | |
USD | |
| Net revenues | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Loan facilitation service | |
| 1,369,443 | | |
| 198,599 | | |
| 29,270 | | |
| 2,447,823 | | |
| 469,313 | | |
| 69,168 | |
| Post-origination service | |
| 271,407 | | |
| 159,575 | | |
| 23,518 | | |
| 537,448 | | |
| 355,781 | | |
| 52,436 | |
| Financing income | |
| 319,938 | | |
| 277,655 | | |
| 40,921 | | |
| 630,078 | | |
| 615,429 | | |
| 90,703 | |
| Guarantee income | |
| 102,570 | | |
| 224,926 | | |
| 33,150 | | |
| 185,498 | | |
| 483,220 | | |
| 71,218 | |
| Other revenue | |
| 209,765 | | |
| 132,826 | | |
| 19,577 | | |
| 409,781 | | |
| 245,977 | | |
| 36,252 | |
| Total net revenue | |
| 2,273,123 | | |
| 993,581 | | |
| 146,436 | | |
| 4,210,628 | | |
| 2,169,720 | | |
| 319,777 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating costs and expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Origination and servicing | |
| 513,974 | | |
| 420,983 | | |
| 62,045 | | |
| 987,699 | | |
| 906,347 | | |
| 133,579 | |
| Borrower acquisitions and marketing | |
| 756,264 | | |
| 149,506 | | |
| 22,034 | | |
| 1,465,271 | | |
| 369,266 | | |
| 54,423 | |
| General and administrative | |
| 49,539 | | |
| 46,264 | | |
| 6,818 | | |
| 101,284 | | |
| 93,385 | | |
| 13,763 | |
| Provision for accounts receivable and contract assets | |
| 33,360 | | |
| 20,124 | | |
| 2,966 | | |
| 42,408 | | |
| 50,902 | | |
| 7,502 | |
| Provision for loans receivable | |
| 46,394 | | |
| 10,071 | | |
| 1,484 | | |
| 108,590 | | |
| 62,397 | | |
| 9,196 | |
| Provision for contingent guarantee liabilities | |
| 207,383 | | |
| 57,553 | | |
| 8,482 | | |
| 271,130 | | |
| 257,562 | | |
| 37,960 | |
| Change in fair value of financial guarantee derivative | |
| (9,574 | ) | |
| (1,196 | ) | |
| (176 | ) | |
| (14,991 | ) | |
| (856 | ) | |
| (126 | ) |
| Provision for credit losses for deposits and other financial assets | |
| 727 | | |
| 95,328 | | |
| 14,050 | | |
| 1,276 | | |
| 95,111 | | |
| 14,018 | |
| Total operating costs and expenses | |
| 1,598,067 | | |
| 798,633 | | |
| 117,703 | | |
| 2,962,667 | | |
| 1,834,114 | | |
| 270,315 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income from operations | |
| 675,056 | | |
| 194,948 | | |
| 28,733 | | |
| 1,247,961 | | |
| 335,606 | | |
| 49,462 | |
| Interest income | |
| 8,927 | | |
| 16,491 | | |
| 2,430 | | |
| 11,848 | | |
| 23,805 | | |
| 3,508 | |
| Interest expenses | |
| (4,943 | ) | |
| (1,558 | ) | |
| (230 | ) | |
| (10,583 | ) | |
| (3,625 | ) | |
| (534 | ) |
| Foreign exchange gain (loss) | |
| 2,101 | | |
| 3,161 | | |
| 466 | | |
| (10,381 | ) | |
| 6,184 | | |
| 911 | |
| (Loss) income from financial investments | |
| (15,378 | ) | |
| 6,921 | | |
| 1,020 | | |
| (19,056 | ) | |
| 5,043 | | |
| 743 | |
| Impairment losses on financial investments | |
| - | | |
| (1,539 | ) | |
| (227 | ) | |
| - | | |
| (8,254 | ) | |
| (1,216 | ) |
| Other income (loss), net | |
| 221 | | |
| 1,550 | | |
| 228 | | |
| 2,156 | | |
| (1,941 | ) | |
| (286 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income before income taxes | |
| 665,984 | | |
| 219,974 | | |
| 32,420 | | |
| 1,221,945 | | |
| 356,818 | | |
| 52,588 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income tax expense | |
| (110,795 | ) | |
| (54,549 | ) | |
| (8,040 | ) | |
| (227,323 | ) | |
| (126,755 | ) | |
| (18,681 | ) |
| Gain (loss) from equity in affiliates, net of tax | |
| 9,830 | | |
| (111,981 | ) | |
| (16,504 | ) | |
| 7,647 | | |
| (106,873 | ) | |
| (15,751 | ) |
| Loss from financial investments at equity method, net of tax | |
| (37,003 | ) | |
| (6,461 | ) | |
| (952 | ) | |
| (16,126 | ) | |
| (38,261 | ) | |
| (5,639 | ) |
| Net income | |
| 528,016 | | |
| 46,983 | | |
| 6,924 | | |
| 986,143 | | |
| 84,929 | | |
| 12,517 | |
| Less: net income attributable to non-controlling interests | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net income attributable to X Financial shareholders | |
| 528,016 | | |
| 46,983 | | |
| 6,924 | | |
| 986,143 | | |
| 84,929 | | |
| 12,517 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income | |
| 528,016 | | |
| 46,983 | | |
| 6,924 | | |
| 986,143 | | |
| 84,929 | | |
| 12,517 | |
| Other comprehensive income, net of tax of nil: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gain from equity in affiliates | |
| 184 | | |
| 113 | | |
| 17 | | |
| 184 | | |
| 155 | | |
| 23 | |
| Loss from financial investments | |
| - | | |
| - | | |
| - | | |
| (768 | ) | |
| - | | |
| - | |
| Foreign currency translation adjustments | |
| (2,995 | ) | |
| (11,866 | ) | |
| (1,749 | ) | |
| (3,194 | ) | |
| (24,646 | ) | |
| (3,632 | ) |
| Comprehensive income | |
| 525,205 | | |
| 35,230 | | |
| 5,192 | | |
| 982,365 | | |
| 60,438 | | |
| 8,908 | |
| Less: comprehensive income attributable to non-controlling interests | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Comprehensive income attributable to X Financial shareholders | |
| 525,205 | | |
| 35,230 | | |
| 5,192 | | |
| 982,365 | | |
| 60,438 | | |
| 8,908 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income per share—basic | |
| 2.10 | | |
| 0.21 | | |
| 0.03 | | |
| 3.91 | | |
| 0.37 | | |
| 0.05 | |
| Net income per share—diluted | |
| 2.00 | | |
| 0.21 | | |
| 0.03 | | |
| 3.75 | | |
| 0.37 | | |
| 0.05 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income per ADS—basic | |
| 12.60 | | |
| 1.26 | | |
| 0.19 | | |
| 23.46 | | |
| 2.22 | | |
| 0.33 | |
| Net income per ADS—diluted | |
| 12.00 | | |
| 1.26 | | |
| 0.19 | | |
| 22.50 | | |
| 2.22 | | |
| 0.33 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of ordinary shares outstanding—basic | |
| 251,566,501 | | |
| 225,263,539 | | |
| 225,263,539 | | |
| 251,927,644 | | |
| 229,678,786 | | |
| 229,678,786 | |
| Weighted average number of ordinary shares outstanding—diluted | |
| 263,948,357 | | |
| 227,553,000 | | |
| 227,553,000 | | |
| 263,019,346 | | |
| 231,984,748 | | |
| 231,984,748 | |
X
Financial
Unaudited
Reconciliations of GAAP and Non-GAAP Results
| | |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| (In thousands, except for share and per share data) | |
2025 | | |
2026 | | |
2026 | | |
2025 | | |
2026 | | |
2026 | |
| | |
RMB | | |
RMB | | |
USD | | |
RMB | | |
RMB | | |
USD | |
| GAAP net income | |
| 528,016 | | |
| 46,983 | | |
| 6,924 | | |
| 986,143 | | |
| 84,929 | | |
| 12,517 | |
| Less: (Loss) income from financial investments (net of tax of nil) | |
| (15,378 | ) | |
| 6,921 | | |
| 1,020 | | |
| (19,056 | ) | |
| 5,043 | | |
| 743 | |
| Less: Impairment losses on financial investments (net of tax of nil) | |
| - | | |
| (1,539 | ) | |
| (227 | ) | |
| - | | |
| (8,254 | ) | |
| (1,216 | ) |
| Less: Impairment losses on long-term investments (net of tax) | |
| - | | |
| (114,925 | ) | |
| (16,938 | ) | |
| - | | |
| (114,925 | ) | |
| (16,938 | ) |
| Less: Loss from financial investments at equity method (net of tax of nil) | |
| (37,003 | ) | |
| (6,461 | ) | |
| (952 | ) | |
| (16,126 | ) | |
| (38,261 | ) | |
| (5,639 | ) |
| Add: Share-based compensation expenses (net of tax of nil) | |
| 12,818 | | |
| 2,850 | | |
| 420 | | |
| 38,656 | | |
| 5,690 | | |
| 839 | |
| Non-GAAP adjusted net income | |
| 593,215 | | |
| 165,837 | | |
| 24,441 | | |
| 1,059,981 | | |
| 247,016 | | |
| 36,406 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP adjusted net income per share—basic | |
| 2.36 | | |
| 0.74 | | |
| 0.11 | | |
| 4.21 | | |
| 1.08 | | |
| 0.16 | |
| Non-GAAP adjusted net income per share—diluted | |
| 2.25 | | |
| 0.73 | | |
| 0.11 | | |
| 4.03 | | |
| 1.06 | | |
| 0.16 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP adjusted net income per ADS—basic | |
| 14.16 | | |
| 4.44 | | |
| 0.65 | | |
| 25.26 | | |
| 6.48 | | |
| 0.96 | |
| Non-GAAP adjusted net income per ADS—diluted | |
| 13.50 | | |
| 4.38 | | |
| 0.65 | | |
| 24.18 | | |
| 6.36 | | |
| 0.94 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of ordinary shares outstanding—basic | |
| 251,566,501 | | |
| 225,263,539 | | |
| 225,263,539 | | |
| 251,927,644 | | |
| 229,678,786 | | |
| 229,678,786 | |
| Weighted average number of ordinary shares outstanding—diluted | |
| 263,948,357 | | |
| 227,553,000 | | |
| 227,553,000 | | |
| 263,019,346 | | |
| 231,984,748 | | |
| 231,984,748 | |
