X Financial Sponsored ADR Class A (XYF.US) released its 2022 financial report, with a total annual revenue of 3.563 billion yuan, contributing to the high-quality development of the real economy.

On March 31, 2023, X Financial Sponsored ADR Class A (XYF.US), a leading financial technology company in China, released its unaudited financial performance for the fourth quarter and full year as of December 31, 2022. The financial data shows that the total amount of loans matched and provided in the fourth quarter of 2022 was 21.7 billion yuan, with a total of 736.55 billion yuan for the full year. The total net income for the fourth quarter of 2022 was 955.6 million yuan, and the full year total net income was 3.563 billion yuan. Tang Yue, the founder, CEO, and chairman of X Financial Sponsored ADR Class A, said, "We are very pleased to end 2022 with a solid quarter. Our total net income grew rapidly on an annual and quarterly basis. Despite the challenging environment throughout the year, we have maintained a high level of asset quality in 2022. We believe that domestic consumption will play an important role in driving China's economic growth this year. So far, in the first quarter of 2023, we have seen a recovery in consumer confidence. In addition, we expect small and medium-sized enterprises to receive more government support to drive their business recovery and future growth." Steady and high-quality development of the business 2022 was a year with a complex and changing market environment. With the effective control of the epidemic in the fourth quarter, the consumer market began to recover, consumer confidence improved, and consumption gradually increased. The 2023 government work report points out the priority of restoring and expanding consumption. Revitalizing consumption and making the real economy more dynamic. Against the backdrop of the overall economic recovery, X Financial Sponsored ADR Class A has always adhered to the principles of "technology for good, user-centricity". It actively empowers the digital transformation of financial institutions, serves the real economy, and has achieved satisfactory results, laying a solid foundation for future high-quality development. According to the financial report data, the outstanding loan balance as of December 31, 2022, was 37.992 billion yuan. The total net income for the fourth quarter of 2022 was 955.6 million yuan, and the full year total net income was 3.563 billion yuan. Zheng Fuya, the CFO of X Financial Sponsored ADR Class A, said, "We are pleased to see continued year-on-year growth in income in the fourth quarter. As the regulatory environment stabilizes and the post-epidemic economy gradually recovers, we expect income growth to accelerate and net profit to improve in sync with income growth. Looking ahead, we will continue to focus on delivering value to shareholders and maintain sustainable business growth with a healthy foundation, mature strategies, and strong execution capabilities." Multidimensional enhancement to improve the quality and efficiency of financial services to the real economy 2022 was a critical year for the digital transformation of the financial industry, and how financial technology companies can effectively empower the digital transformation of financial institutions and serve the real economy with finance+technology+digitalization has become a focus of attention in the market. X Financial Sponsored ADR Class A has fully played its role as a "connector" between finance and the real economy, constantly improving its technological capabilities, refining its operations, and targeting small and micro enterprises and new urban residents to enhance the quality and efficiency of financial services from multiple dimensions. With its technological advantages, X Financial Sponsored ADR Class A has made diversified breakthroughs in dimensions such as "user management," "risk control," and "credit management" through continuous iteration and optimization of its technology, providing financial institutions with efficient and reliable technical products and solutions based on its long-term accumulation of full-process risk control capabilities and diversified growth concepts and methodologies in the field of financial technology services. As of now, X Financial Sponsored ADR Class A has served nearly 70 financial institutions. The fundamental of refined operation lies in the implementation of technology-based "on-the-ground services," which requires targeting service objects and laying out ecological scenes around users. In 2021, X Financial Sponsored ADR Class A launched the "Micro-light Plan," further focusing on serving small and micro enterprises and individual businesses, providing financing supply and solving the problem of "difficult and expensive financing" for small and micro enterprises. Data shows that from January 2020 to December 2022, X Financial Sponsored ADR Class A served a total of 3.63 million small and micro enterprise owners and individual businesses, covering 30 provinces, municipalities, and autonomous regions across the country. It is worth mentioning that many small and micro enterprise owners are also part of the "new urban residents" group, which overlaps with each other. How to serve the new urban residents more accurately also tests the precision operation of financial technology companies. In 2022, X Financial Sponsored ADR Class A launched the "Winxin Plan," focusing on many new urban residents. Leveraging its technological expertise and partnering with banks and other financial institutions, it taps into the new urban residents who have weak traditional financial willingness, insufficient coverage, and inadequate capabilities. This fundamentally improves the accessibility and convenience of financial services for new urban residents, helping the real economy steadily recover. Data shows that in 2022, 59% of X Financial Sponsored ADR Class A's borrowing users were new urban residents, and 54% of the loans flowed to new urban residents throughout the year. With the addition of technology, refined operations, and multidimensional services, X Financial Sponsored ADR Class A has acquired high-quality user resources, stable asset structures, and gained market recognition. Li Kan, the president of X Financial Sponsored ADR Class A, said, "In the fourth quarter, we...The total amount of loans we facilitated and disbursed reached RMB 21.7 billion, and the total loan amount for the year reached RMB 73.7 billion. Our high-quality borrower base remained stable, and we continue to improve asset quality through data-driven and technology-enabled risk control systems. As of the end of December 2022, the delinquency rate for all outstanding loans of 31-60 days decreased from 1.48% a year ago to 1.02%. We continue to strengthen cooperation with institutional funding sources, and with the additional credit limits they have provided since the fourth quarter, we see opportunities to further optimize funding costs and improve operational efficiency in the future.The public welfare actions are endless, transmitting the warmth of Shenzhen. X Financial Sponsored ADR Class A, while developing, also prioritizes safeguarding the legitimate rights and interests of its users. It has not only established a multidimensional and comprehensive consumer rights protection system but also ensured the experience of each user through the construction of a human + AI intelligent customer service system and the improvement of service application mechanisms. In addition, a special working group has been established to implement these measures in every aspect of business processes. In terms of "anti-fraud publicity", X Financial Sponsored ADR Class A uses official accounts and other channels to promote and raise awareness of financial consumer protection knowledge among its users. The anti-fraud column titled "Fraud Prevention Guide" has been highly praised for its practicality and easy-to-understand approach. Xiaoying Public Welfare Foundation is dedicated to promoting effective reading promotion models and teaching models in rural schools, in order to adaptively improve the current state of children's reading in rural schools. After continuous exploration and practice, the reading promotion and psychological health care model of XiaoyingChengxiao project, a rural boarding program, has taken root. The foundation has organized rural teacher reading guidance training camps, funded the construction of rural children's libraries in four schools in Xunwu County that can radiate surrounding villages and towns and the four schools themselves, and promoted the revitalization of rural reading through public welfare programs. While practicing social responsibility, it has also conveyed the "warmth of Shenzhen" to the whole society. In the second quarter of 2023, X Financial Sponsored ADR Class A will release its CSR social responsibility report. The company will adhere to the mission of serving the real economy, uphold compliance as the foundation, assist in the digital transformation of financial institutions, and fulfill corporate social responsibility through practical actions, continuously enhancing its corporate governance. Li Kan, the President of X Financial Sponsored ADR Class A, stated that in 2022, the company consistently adhered to prudent operation and compliant development, and achieved satisfactory results. 2023 is a crucial year for revitalizing consumption, and we are full of confidence for the future. Only by rooting ourselves in serving the real economy, utilizing our own technological capabilities to serve small and micro enterprises and new urban residents, and steadfastly cultivating the market, can we make steady progress and achieve long-term success.