SHENZHEN, China, May 30, 2024 /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 first quarter ended March 31, 2024. First Quarter 2024 Operational Highlights Three Months Ended March 31, 2023 Three Months Ended December 31, 2023 Three Months Ended March 31, 2024 QoQ YoY Total loan amount facilitated and originated (RMB in million) 24,088 26,134 21,505 (17.7 %) (10.7 %) Number of active borrowers 1,523,738 1,603,760 1,369,410 (14.6 %) (10.1 %) The total loan amount facilitated and originated[1] in the first quarter of 2024 was RMB21,505 million, compared with RMB24,088 million in the same period of 2023. Total number of active borrowers[2] was 1,369,410 in the first quarter of 2024, compared with 1,523,738 in the same period of 2023. As of March 31, 2023 As of December 31, 2023 As of March 31, 2024 Total outstanding loan balance (RMB in million) 41,531 48,847 43,812 Delinquency rates for all outstanding loans that are past due for 31-60 days 1.05 % 1.57 % 1.61 % Delinquency rates for all outstanding loans that are past due for 91-180 days 2.40 % 3.12 % 4.37 % The total outstanding loan balance[3] as of March 31, 2024 was RMB43,812 million, compared with RMB41,531 million as of March 31, 2023. The delinquency rate for all outstanding loans that are past due for 31-60 days[4] as of March 31, 2024 was 1.61%, compared with 1.05% as of March 31, 2023. The delinquency rate for all outstanding loans that are past due for 91-180 days[5] as of March 31, 2024 was 4.37%, compared with 2.40% as of March 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 charged-off and are excluded in the outstanding loan 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 exclude Xiaoying Housing Loan delinquent for more than 60 days in the outstanding loan balance. [4] Represents the balance of the outstanding principal and accrued outstanding interest for loans that were 31 to 60 days past due as a percentage of the total balance of outstanding principal and accrued outstanding interest for loans that the Company facilitated and originated as of a specific date. Loans that are delinquent for more than 60 days are charged-off and excluded in the calculation of delinquency rate by balance. Xiaoying Housing Loan was launched in 2015 and ceased in 2019, and all the outstanding loan balance of housing loan as of March 31, 2023, December 31, 2023 and March 31, 2024 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. [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 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 loans that the Company facilitated and originated as of a specific date. Loans that are delinquent for more than 180 days are excluded in the calculation of delinquency rate by balance, except for Xiaoying Housing Loan. All the outstanding loan balance of housing loan as of March 31, 2023, December 31, 2023 and March 31, 2024 were overdue more than 180 days. To make the delinquency rate by balance comparable, the Company excludes Xiaoying Housing Loan in the calculation of delinquency rate. First Quarter 2024 Financial Highlights (In thousands, except for share and per share data) Three Months Ended March 31, 2023 Three Months Ended December 31, 2023 Three Months Ended March 31, 2024 QoQ YoY  RMB    RMB    RMB   Total net revenue 1,004,934 1,192,664 1,207,974 1.3 % 20.2 % Total operating costs and expenses (677,151) (938,472) (831,433) (11.4 %) 22.8 % Income from operations 327,783 254,192 376,541 48.1 % 14.9 % Net income 284,346 188,968 363,139 92.2 % 27.7 % Non-GAAP adjusted net income 306,525 230,782 322,205 39.6 % 5.1 % Net income per ADS—basic 5.94 3.90 7.44 90.8 % 25.3 % Net income per ADS—diluted 5.82 3.84 7.32 90.6 % 25.8 % Non-GAAP adjusted net income per ADS—basic 6.36 4.74 6.60 39.2 % 3.8 % Non-GAAP adjusted net income per ADS—diluted 6.24 4.68 6.54 39.7 % 4.8 % Total net revenue in the first quarter of 2024 was RMB1,208.0 million (US$167.3 million), representing an increase of 20.2% from RMB1,004.9 million in the same period of 2023. Income from operations in the first quarter of 2024 was RMB376.5 million (US$52.2 million), compared with RMB327.8 million in the same period of 2023. Net income in the first quarter of 2024 was RMB363.1 million (US$50.3 million), compared with RMB284.3 million in the same period of 2023. Non-GAAP[6] adjusted net income in the first quarter of 2024 was RMB322.2 million (US$44.6 million), compared with RMB306.5 million in the same period of 2023. Net income per basic and diluted American depositary share ("ADS") [7] in the first quarter of 2024 was RMB7.44 (US$1.03) and RMB7.32 (US$1.01), compared with RMB5.94 and RMB5.82, respectively, in the same period of 2023. Non-GAAP adjusted net income per basic and adjusted diluted ADS in the first quarter of 2024 was RMB6.60 (US$0.91) and RMB6.54 (US$0.91), compared with RMB6.36 and RMB6.24, 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, and (iii) adjusted net income (loss) per diluted ADS, 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. 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. Mr. Kent Li, President of the Company, commented, "We are pleased to start 2024 with a solid financial performance in the first quarter. We continued to implement our strategy of proactively and dynamically adjusting loan volumes based on close monitoring of asset quality dynamics and this, again, proved effective in securing our profitability. As a result, despite a year-over-year and quarter-over-quarter decline in the loan volume, both our top and bottom lines increased on a yearly and quarterly basis, with notable improvements in profits." "In the first quarter, the total loan amount facilitated and originated decreased by 11% year-over-year and 18% quarter-over-quarter to RMB22 billion, in line with our guidance. Our total outstanding loan balance was RMB44 billion at the end of March 2024. Delinquency rates for outstanding loans past due for 31-60 days and 91-180 days were 1.61% and 4.37%, respectively, at the end of the quarter, compared to 1.05% and 2.40% a year ago. The increase in overdue loans as a percentage of total outstanding loans is primarily due to lower outstanding loan balances at this quarter end as a result of the proactive control of loans facilitated and originated that we initiated in the fourth quarter of last year. Excluding the impact of the reduced loan volume, asset quality begun to stabilize during this quarter. We remain committed to closely monitor borrowers through the entire credit cycle, continuously strengthening our risk control system, and taking all necessary measures to mitigate risks." "We are confident in our future profitable growth. With stabilized asset quality, we have clearer visibility on the loan volume for 2024 under our current strategy and expect the total loan amount facilitated and originated for the full year to be around RMB100 billion. Our commitment to sustainable profitability and shareholder value creation is unwavering." Mr. Frank Fuya Zheng, Chief Financial Officer of the Company, added, "We are very pleased with the solid financial results we achieved in the first quarter. Total net revenue was RMB1.2 billion, up 20% year-over-year and 1% quarter-over-quarter despite the decline in loan volumes. Thanks to our strict risk controls and improved operational efficiency, net income increased by 28% year-over-year and 92% quarter-over-quarter to RMB363 million. This once again demonstrates the effectiveness of our strategy, strong execution, and commitment to ensuring long-term profitability. Beginning this quarter, we combined borrower acquisition costs from origination and servicing expenses, indirect expenses of the borrower acquisitions from general and administrative expenses and sales and marketing expenses into borrower acquisitions and marketing expenses within total operating costs and expenses to provide a clearer breakdown of the Company's expenses for investors. Going forward, we will continue to improve asset quality while optimizing borrower acquisition costs to drive sustainable profitability." "Our board of directors has authorized a new program to repurchase up to $20 million worth of our shares which will be effective from June 1, 2024 through November 30, 2025. We are confident in our position as a public company and will drive long-term returns for our shareholders." First Quarter 2024 Financial Results Total net revenue in the first quarter of 2024 increased by 20.2% to RMB1,208.0 million (US$167.3 million) from RMB1,004.9  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.  Three Months Ended March 31, (In thousands, except for share and per share data) 2023 2024 YoY  RMB     % of Revenue  RMB     % of Revenue Loan facilitation service 580,604 57.8 % 614,150 50.8 % 5.8 % Post-origination service 121,273 12.1 % 152,742 12.6 % 25.9 % Financing income 254,056 25.3 % 334,628 27.7 % 31.7 % Guarantee income - 0.0 % 32,926 2.7 % 100.0 % Other revenue 49,001 4.8 % 73,528 6.2 % 50.1 % Total net revenue 1,004,934 100.0 % 1,207,974 100.0 % 20.2 % Loan facilitation service fees in the first quarter of 2024 increased by 5.8% to RMB614.2 million (US$85.1 million) from RMB580.6 million in the same period of 2023, primarily due to a decrease in the impact from expected prepayment risk this quarter compared with the same period of 2023. Post-origination service fees in the first quarter of 2024 increased by 25.9% to RMB152.7 million (US$21.2 million) from RMB121.3 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 first quarter of 2024 increased by 31.7% to RMB334.6 million (US$46.3 million) from RMB254.1 million in the same period of 2023, primarily due to an increase in average loan balances compared with the same period of 2023. Guarantee income in the first quarter of 2024 was RMB32.9 million (US$4.6 million), primarily due to an increase in guarantee income arising from financing guarantee business operated by a subsidiary which holds the financing guarantee license and commenced the financing guarantee business in second half of 2023. Other revenue in the first quarter of 2024 increased by 50.1% to RMB73.5 million (US$10.2 million), compared with RMB49.0 million in the same ...