SHENZHEN,China,Aug. 22,2024 --X Financial (NYSE: XYF) (the "Company" or "we"),a leading online personal finance company in China,today announced its unaudited financial results for the second quarter ended June 30,2024.

Second Quarter 2024 Operational Highlights

Three Months Ended

June 30,2023

Three Months Ended

March 31,2024

Three Months Ended

June 30,2024

QoQ

YoY

Total loan amount facilitated and

originated (RMB in million)

25,874

21,505

22,749

5.8%

(12.1%)

Number of active borrowers

1,474,930

1,369,410

1,642,605

19.9%

11.4%

The total loan amount facilitated and originated[1] in the second quarter of 2024 was RMB22,749 million,compared with RMB25,874 million in the same period of 2023.

Total number of active borrowers[2] was 1,605 in the second quarter of 2024,compared with 1,930 in the same period of 2023.

As of June 30,2023

As of March 31,2024

As of June 30,2024

Total outstanding loan balance (RMB in million)

45,071

43,812

41,804

Delinquency rates for all outstanding loans that are past

due for 31-60 days

0.96%

1.61%

1.29%

Delinquency rates for all outstanding loans that are past

due for 91-180 days

2.50%

4.37%

4.38%

The total outstanding loan balance[3] as of June 30,2024 was RMB41,804 million,compared with RMB45,071 million as of June 30,2023.

The delinquency rate for all outstanding loans that are past due for 31-60 days[4] as of June 30,2024 was 1.29%,compared with 0.96% as of June 30,2023.

The delinquency rate for all outstanding loans that are past due for 91-180 days[5] as of June 30,2024 was 4.38%,compared with 2.50% as of June 30,2023.

[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 excludedwhencalculatingthedenominator. Starting from the first quarter of 2021,substantially all of the loans facilitated and provided 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 whencalculatingthedenominator.

Second Quarter 2024 Financial Highlights

(In thousands,except for share and per share

data)

Three Months Ended

June 30,2024

QoQ

YoY

RMB

RMB

RMB

Total net revenue

1,220,422

1,207,974

1,372,588

13.6%

12.5%

Total operating costs and expenses

(775,293)

(831,433)

(909,535)

9.4%

17.3%

Income from operations

445,129

376,541

463,053

23.0%

4.0%

Net income

366,292

363,139

415,303

14.4%

13.4%

Non-GAAP adjusted net income

364,885

322,205

374,661

16.3%

2.7%

Net income per ADS—basic

7.62

7.44

8.46

13.7%

11.0%

Net income per ADS—diluted

7.50

7.32

8.28

13.1%

10.4%

Non-GAAP adjusted net income per ADS—basic

7.62

6.60

7.62

15.5%

0.0%

Non-GAAP adjusted net income per ADS—diluted

7.44

6.54

7.50

14.7%

0.8%

Total net revenue in the second quarter of 2024 was RMB1,372.6 million (US$188.9 million),representing an increase of 12.5% from RMB1,220.4 million in the same period of 2023.

Income from operations in the second quarter of 2024 was RMB463.1 million (US$63.7 million),compared with RMB445.1 million in the same period of 2023.

Net income in the second quarter of 2024 was RMB415.3 million (US$57.1 million),compared with RMB366.3 million in the same period of 2023.

Non-GAAP[6] adjusted net income in the second quarter of 2024 was RMB374.7 million (US$51.6 million),compared with RMB364.9 million in the same period of 2023.

Net income per basic and diluted American depositary share ("ADS") [7] in the second quarter of 2024 was RMB8.46 (US$1.16) and RMB8.28 (US$1.14),compared with RMB7.62 and RMB7.50,respectively,in the same period of 2023.

Non-GAAP adjusted net income per basic and adjusted diluted ADS in the second quarter of 2024 was RMB7.62 (US$1.05) and RMB7.50 (US$1.03),compared with RMB7.62 and RMB7.44,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 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. 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 ClassA ordinary shares.

Mr. Kent Li,President of the Company,commented,"We are very pleased to report another solid quarter as we made further progress in improving our profitability. Our proactive management of loan volumes based on asset quality dynamics continued to bear fruit in the second quarter. As a result,while loan volume declined year-on-year,our net income for the quarter grew significantly and reached a record high."

"The total loan amount facilitated and originated decreased by 12% year-on-year but increased 6% sequentially to RMB23 billion. Our total outstanding loan balance was RMB42 billion at the end of June 2024. Delinquency rates for outstanding loans past due for 31-60 days and 91-180 days were 1.29% and 4.38%,at the end of the quarter,compared to 1.61% and 4.37% a quarter ago and 0.96% and 2.50% a year ago. As we have seen an improvement in our asset quality,we have decided to ease our strict controls on loan volumes,and we expect our loan volumes to gradually recover on a year-on-year basis in the second half of the year. Meanwhile,we will continue to strengthen and refine our risk management system to improve asset quality. Our focus remains on sustainable profitability,and we employ flexible tactics to adapt to evolving market conditions to achieve this and,as always,to increase shareholder value."

Mr. Frank Fuya Zheng,Chief Financial Officer of the Company,added,"We delivered strong financial results this quarter. Total net revenue was RMB1.4 billion,up 12.5% year-on-year and 14% sequentially. We continued to focus on cost control and improved asset quality and,as a result,our net income grew 13% year-on-year and 14% sequentially to RMB415 million,a record high in our history. In May 2024,we announced a new US$20 million share repurchase program. In June 2024,we initiated a tender offer to purchase 2 million ADSs,which was completed in July 2024. We are pleased to have executed this ADS buyback,which provided liquidity to shareholders seeking an exit at a premium price and,at the same time,increased remaining shareholders' stakes in the Company. We are committed to profitable growth while exploring various avenues to further increase returns for our shareholders."

Second Quarter 2024 Financial Results

Total net revenuein the second quarter of 2024increased by 12.5%to RMB1,372.6million (US$188.9million) from RMB1,220.4 million in the same period of 2023,primarily due to growth in various disaggregated revenue items compared with the same period of 2023. Please refer to the analysis of disaggregation of revenue below.

Three Months Ended June 30,

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

2023

2024

YoY

RMB

%ofRevenue

RMB

%ofRevenue

Loan facilitation service

715,503

58.6%

732,249

53.3%

2.3%

Post-origination service

140,317

11.5%

154,669

11.3%

10.2%

Financing income

274,639

22.5%

351,012

25.6%

27.8%

Guarantee income

-

0.0%

45,564

3.3%

100.0%

Other revenue

89,963

7.4%

89,094

6.5%

(1.0%)

Total net revenue

1,422

100.0%

1,588

100.0%

12.5%

Loan facilitation service fees in the second quarter of 2024 increased by 2.3%to RMB732.2million (US$100.8million) from RMB715.5million in the same period of 2023,primarily due to a decrease in the expected prepayment rates this quarter compared with the same period of 2023.

Post-origination servicefees in the second quarter of 2024 increased by 10.2%to RMB154.7million (US$21.3million) from RMB140.3million 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 incomein the second quarter of 2024 increased by 27.8%to RMB351.0million (US$48.3million)from RMB274.6million in the same period of 2023,due to an increase in average loan balances heldbytheCompany compared with the same period of 2023.

Guarantee income in the second quarter of 2024 wasRMB45.6 million (US$6.3 million),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 second quarter of 2024 decreased by 1.0% to RMB89.1 million (US$12.3 million),compared with RMB90.0 million in the same period of 2023.

Origination and servicing expenses in the second quarter of 2024 increased by 19.1%to RMB415.1million (US$57.1million) from RMB348.6million 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 provided in the previous quarters compared with the same period of 2023.

Borrower acquisitions and marketing expenses in the second quarter of 2024 decreased by 2.6%to RMB323.6million (US$44.5million) from RMB332.1million in the same period of 2023.

Provision for loans receivable in the second quarter of 2024was RMB95.9million (US$13.2million),compared with RMB55.4 million in the same period of 2023,primarily due to an increase in loans receivable held by the Company as a result of the cumulative effect of increased volume of loans facilitated and provided in the previous quarters compared with the same period of 2023.

Provision for contingent guarantee liabilities in the second quarter of 2024 was RMB21.4 million (US$2.9 million),due to increase in the guarantee liability 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.

Income from operationsin the second quarter of 2024was RMB463.1million (US$63.7million),compared with RMB445.1million in the same period of 2023.

Income before income taxes and gain from equity in affiliatesin the second quarter of 2024was RMB504.0million (US$69.4million),compared with RMB443.9million in the same period of 2023.

Income tax expense in the second quarter of 2024was RMB89.6million (US$12.3million),compared with RMB87.0million in the same period of 2023.

Net incomein the second quarter of 2024was RMB415.3million (US$57.1million),compared with RMB366.3million in the same period of 2023.

Non-GAAP adjusted net income in the second quarter of 2024was RMB374.7 million (US$51.6 million),compared with RMB364.9 million in the same period of 2023.

Net income per basic and diluted ADSin the second quarter of 2024was RMB8.46(US$1.16),and RMB8.28(US$1.14),compared with RMB7.62and RMB7.50,in the same period of 2023.

Non-GAAP adjusted net income per basic and diluted ADSin the second quarter of 2024was RMB7.62(US$1.05),and RMB7.50(US$1.03),compared with RMB7.62and RMB7.44respectively,in the same period of 2023.

Cash and cash equivalentswas RMB1,612.2million (US$221.8million) as of June 30,2024,compared with RMB1,413.1 million as of March 31,2024.

Recent Development

Share Repurchase Plan

On May 30,the Company announced that its board of directors authorized a new US$20 million share repurchase program,effective through November 30,2025. On June 5,the Company announced that it had commenced a tender offer under the share repurchase program to purchase up to 2 million ADSs at a price of $4.52 per ADS. On July 15,the Company announced the results of the tender offer. A total of 2,026,640 ADSs were validly tendered and not withdrawn. The total repurchase amount of the tender offer was approximately US$9.2 million. Following the completion of the tender offer,the Company has about US$10.8 million left for potential repurchases under its new US$20 million plan. Additionally,approximately US$5.5 million remains under our US$30 million plan which is effective until the end of September 2024.

Declaration of Semi-Annual Dividend

In March 2024,the Company approved a semi-annual dividend policy. Pursuant to the semi-annual dividend policy,the Board today approved the declaration and payment of a semi-annual dividend of US$0.17 per ADS (approximately US$0.028 per ordinary share) for the first half of 2024. The holders of the Company's ordinary shares shown on the Company's record at the close of trading on September 4,2024 (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 27,2024. Dividends to the Company's ADS holders will be paid by the Depositary on or after September 27,and the precise timing of receipt will vary based on the processing efficiency of the respective holding brokerage.

Business Outlook

The Company expects the total loan amount facilitated and originated for the third quarter of 2024 to be between RMB26.0 billion and RMB27.5 billion.

This forecast reflects the Company's current and preliminary views,which are subject to changes.

Conference Call

X Financial's management team will host an earnings conference call at 7:00 AM U.S. Eastern Time on August 22,2024 (7:00 PM Beijing / Hong Kong Time on August 22,2024).

Dial-in details for the earnings conference call are as follows:

United States:

1-888-346-8982

Hong Kong:

852-301-84992

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 29,2024:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

3590885

Additionally,a live and archived webcast of the conference call will be available at http://ir.xiaoyinggroup.com.

About X Financial

X Financial (NYSE: XYF) (the "Company") is a leading online personal finance company in China. 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 originateloans 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 Statement

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),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 forthe 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 7.2672 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 June 28,2024.

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 diff 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 data)

As of December 31,2023

As of June 30,2024

As of June 30,2024

RMB

RMB

USD

ASSETS

Cash and cash equivalents

1,195,352

1,612,200

221,846

Restricted cash,net

749,070

590,210

81,216

Accounts receivable and contract assets,net

1,659,588

1,510,866

207,902

Loans receivable from Xiaoying Credit Loans and other loans,net

4,947,833

5,080,810

699,143

Deposits to institutional cooperators,702,472

1,589,195

218,681

Prepaid expenses and other current assets,net

48,767

34,878

4,799

Deferred tax assets,net

135,958

192,391

26,474

Long-term investments

493,411

497,278

68,428

Property and equipment,net

8,642

10,423

1,434

Intangible assets,net

36,810

36,504

5,023

Loan receivable from Xiaoying Housing Loans,657

6,494

894

Financial investments

608,198

756,323

104,074

Other non-current assets

55,265

57,655

7,934

TOTAL ASSETS

11,650,023

11,975,227

1,647,848

LIABILITIES

Payable to investors and institutional funding partners at amortized cost

3,584,041

3,134,236

431,285

Guarantee liabilities

61,907

82,838

11,399

Deferred guarantee income

46,597

84,566

11,637

Short-term borrowings

565,000

474,500

65,293

Accrued payroll and welfare

86,771

58,757

8,086

Other tax payable

289,819

268,198

36,905

Income tax payable

446,500

472,584

65,030

Accrued expenses and other current liabilities

595,427

674,731

92,846

Dividend payable

59,226

-

-

Other non-current liabilities

37,571

35,359

4,866

Deferred tax liabilities

30,040

35,137

4,835

TOTAL LIABILITIES

5,802,899

5,320,906

732,182

Commitments and Contingencies

Equity:

Common shares

207

207

28

Treasury stock

(111,520)

(101,788)

(14,006)

Additional paid-in capital

3,196,942

3,206,740

441,262

Retained earnings

2,692,018

3,469,948

477,481

Other comprehensive income

69,477

79,214

10,901

Total X Financial shareholders' equity

5,847,124

6,654,321

915,666

Non-controlling interests

-

-

-

TOTAL EQUITY

5,666

TOTAL LIABILITIES AND EQUITY

11,848

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)

2023

2024

2024

2023

2024

2024

RMB

RMB

USD

RMB

RMB

USD

Net revenues

Loan facilitation service

715,503

732,249

100,761

1,296,107

1,346,399

185,271

Post-origination service

140,317

154,669

21,283

261,590

307,411

42,301

Financing income

274,639

351,012

48,301

528,695

685,640

94,347

Guarantee income

-

45,564

6,270

-

78,490

10,801

Other revenue

89,963

89,094

12,260

138,964

162,622

22,378

Total net revenue

1,422

1,588

188,875

2,225,356

2,580,562

355,098

Operating costs and expenses:

Origination and servicing1

348,604

415,071

57,116

720,088

841,618

115,811

Borrower acquisitions and marketing1

332,119

323,636

44,534

604,061

572,010

78,711

General and administrative1

36,566

39,073

5,377

74,633

77,547

10,671

Provision for accounts receivable and contract assets

3,175

9,016

1,241

2,235

17,671

2,432

Provision for loans receivable

55,449

95,865

13,192

75,826

157,405

21,660

Provision for contingent guarantee liabilities

-

21,376

2,941

-

69,269

9,532

Change in fair value of financial guarantee derivative2

(667)

-

-

(24,966)

-

-

Fair value adjustments related to Consolidated Trusts2

247

-

-

800

-

-

(Reversal of) provision for credit losses for depositsandotherfinancialassets

(200)

5,498

757

(234)

5,448

750

Total operating costs and expenses

775,293

909,535

125,158

1,452,443

1,740,968

239,567

Income from operations

445,129

463,053

63,717

772,913

839,594

115,531

Interest expenses,net

(8,457)

(1,818)

(250)

(10,455)

(6,109)

(841)

Foreign exchange loss

(11,798)

(7,807)

(1,074)

(8,781)

(8,231)

(1,133)

Income from financial investments

12,093

51,276

7,056

2,579

101,522

13,970

Other income (loss),net

6,932

(657)

(90)

18,263

3,388

466

Income before income taxes and gain from equity in affiliates

443,899

504,047

69,359

774,519

930,164

127,993

Incometaxexpense

(87,043)

(89,568)

(12,325)

(139,607)

(154,593)

(21,273)

Gain from equity in affiliates,net of tax

9,436

824

113

15,725

2,869

395

Net income

366,292

415,303

57,147

650,637

778,440

107,115

Less: net income attributable to non-controlling interests

-

-

-

-

-

-

Net income attributable to X Financial shareholders

366,115

Net income

366,115

Other comprehensive income,net of tax of nil:

Gain from equity in affiliates

40

-

-

42

30

4

Income from financial investments

-

2,294

316

-

4,519

622

Foreign currency translation adjustments

27,186

3,970

546

19,925

5,188

714

Comprehensive income

393,518

421,567

58,009

670,604

788,177

108,455

Less: comprehensive income attributable to non-controlling interests

-

-

-

-

-

-

Comprehensive income attributable to X Financial shareholders

393,455

Net income per share—basic

1.27

1.41

0.19

2.26

2.65

0.36

Net income per share—diluted

1.25

1.38

0.19

2.21

2.60

0.36

Net income per ADS—basic

7.62

8.46

1.16

13.56

15.90

2.19

Net income per ADS—diluted

7.50

8.28

1.14

13.26

15.60

2.15

Weighted average number of ordinary shares outstanding—basic

287,607,857

293,914,248

293,248

287,955,066

294,224,447

294,447

Weighted average number of ordinary shares outstanding—diluted

293,863,323

300,458,575

300,575

294,078,329

299,681,672

299,672

1 Starting in the first quarter of 2024,management has concluded to separate expenses related to borrower acquisitions from origination and servicing expenses and indirect expenses of the borrower acquisitions from

general and administrative expenses to a single line item as theses expenses become more and more significant and thus deemed to be useful to financial statement users. Furtherly,management has determined to embed

the sales and marketing expenses,which is not considered as material,in other line item. In conclusion,management has decided to combine these two line items into one captioned borrower acquisitions and marketing

expenses. Management has correspondingly conformed prior period presentation to current period presentation to enhance comparability. This change in presentation does not affect any subtotal line on the face of

consolidated statements of comprehensive income.

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

Three Months Ended June 30,2023

Changes

before re-grouping

after re-grouping

RMB

RMB

RMB

Origination and servicing

669,720

348,604

(321,116)

Borrower acquisitions and marketing expenses

-

332,119

332,119

Sales and marketing

3,431

-

(3,431)

General and administrative

44,138

36,566

(7,572)

2 Starting in the first quarter of 2024,management has considered the facts that fair value change related to financial guarantee services and Consolidated Trusts are generated from ordinary course of businesses,and has

concluded to reclass the amount to captions above total operating costs and expenses. Prior to the reclassification,management classified all amount of fair value changes to captions below total operating costs and

expenses. This reclassification does not have impact on net income for any prior periods presented.

X Financial

Unaudited Reconciliations of GAAP and Non-GAAP Results

Three Months Ended June 30,except for share and per share data)

2023

2024

2024

2023

2024

2024

RMB

RMB

USD

RMB

RMB

USD

GAAP net income

366,115

Less: Income (loss) from financial investments (net of tax of nil)

12,970

Less: Impairment losses on financial investments (net of tax of nil)

-

-

-

-

-

-

Less: Impairment losses on long-term investments (net of tax)

-

-

-

-

-

-

Add: Share-based compensation expenses (net of tax of nil)

10,686

10,634

1,463

23,351

19,946

2,745

Non-GAAP adjusted net income

364,885

374,661

51,554

671,409

696,864

95,890

Non-GAAP adjusted net income per share—basic

1.27

1.27

0.17

2.33

2.37

0.33

Non-GAAP adjusted net income per share—diluted

1.24

1.25

0.17

2.28

2.33

0.32

Non-GAAP adjusted net income per ADS—basic

7.62

7.62

1.05

13.98

14.22

1.96

Non-GAAP adjusted net income per ADS—diluted

7.44

7.50

1.03

13.68

13.98

1.92

Weighted average number of ordinary shares outstanding—basic

287,672