X Financial Reports 1st Quarter 2020 Unaudited Financial Results.

SHENZHEN, China: X Financial (NYSE: XYF) (the "Company" or "we"), a leading technology-driven personal finance company in China, today announced its unaudited financial results for the first quarter ended March 31, 2020.

First Quarter 2020 Financial Highlights

Net revenues decreased by 31.9% to RMB529.0 million (US$74.5 million) from RMB776.4 million in the same period of 2019.

Loss from operations was RMB130.0 million (US$18.3 million), compared with income from operations of RMB279.1 million in the same period of 2019.

Net loss attributable to X Financial shareholders was RMB196.3 million (US$27.7 million), compared with net income attributable to X Financial shareholders of RMB209.0 million in the same period of 2019.

Non-GAAP[1] adjusted net loss attributable to X Financial shareholders was RMB159.9 million (US$22.5 million), compared with non-GAAP adjusted net income attributable to X Financial shareholders of RMB251.2 million in the same period of 2019.

Net loss per basic and diluted American depositary share ("ADS")[2] were RMB1.22 (US$0.17) and RMB1.22 (US$0.17) respectively, compared with net income per basic and diluted American depositary share ("ADS") of RMB1.36 and RMB1.30, respectively, in the same period of 2019.

Non-GAAP adjusted net loss per basic and adjusted diluted ADS were RMB1.00 (US$0.14) and RMB1.00 (US$0.14), respectively, compared with non-GAAP adjusted net income per basic and adjusted diluted ADS of RMB1.64 and RMB1.56, respectively, in the same period of 2019.

First Quarter 2020 Operational Highlights

The total loan facilitation amount[3] was RMB6,823 million, representing a decrease of 29.1% from RMB9,629 million in the same period of 2019 and a decrease of 23.2% from RMB8,890 million in the fourth quarter of 2019.

The loan facilitation amount of Xiaoying Credit Loan[4] was RMB4,631 million, representing a decrease of 41.6% from RMB7,932 million in the same period of 2019 and a decrease of 25.1% from RMB6,185 million in the fourth quarter of 2019. Xiaoying Credit Loan accounted for 67.9% of the Company's total loan facilitation amount, compared with 82.4% in the same period of 2019.

The total outstanding loan balance[5] as of March 31, 2020 was RMB14,370 million, compared with RMB20,187 million as of March 31, 2019 and RMB17,267 million as of December 31, 2019.

The average loan amount per transaction[6] of Xiaoying Term Loan[7] was RMB15,745, representing an increase of 37.7% from RMB11,434 in the same period of 2019 and an increase of 7.8% from RMB14,611 for the fourth quarter of 2019.

The average consumption amount per user[8] of Xiaoying Revolving Loan[9] was RMB 8,582, representing an increase of 3.8% from RMB8,268 for the fourth quarter of 2019.

The delinquency rates for all outstanding loans that are past due for 31-90 days and 91-180 days as of March 31, 2020 were 6.71% and 7.12%, respectively, compared with 4.05% and 5.11%, respectively, as of December 31, 2019, and 3.56% and 5.21%, respectively, as of March 31, 2019.

The number of cumulative borrowers, each of whom made at least one transaction on the Company's lending platform, as of March 31, 2020 was 5,732,385.

Total cumulative registered users reached 42.6 million as of March 31, 2020.

Institutional funding accounted for 81.7% of the total loan facilitation amount, compared with 50.2% in the fourth quarter of 2019.

The Gross Merchandise Value ("GMV")[10] of Xiaoying Online Mall[11] was RMB60.8 million, representing a decrease of 62.2% from RMB160.9 million in the fourth quarter of 2019.

Mr. Justin Tang, the Founder, Chief Executive Officer and Chairman of the Company, commented, "Despite challenges created by the Coronavirus Disease (the "COVID-19") pandemic adversely impacting our operating environment, we made meaningful progress in expanding institutional funding for all new loan products originated on our platform during the quarter. Institutional funding accounted for 81.7% of the loans facilitated through our platform in the first quarter, representing an increase from 50.2% in the previous quarter. We rapidly built upon this with institutional funding which accounts for 100% of funding for the loans facilitated through our platform now."

"Maintaining full compliance with current regulations and adapting to the ever changing macroeconomic environment have been critical to our success so far. We...