Qfin (QFIN) investor relations material

Executive summary

• The consumer finance industry in China faced significant pressure in Q2 2026, with a sharp decline in household consumer loans, tightening regulatory oversight, and a late-June liquidity crisis that triggered funding contraction and risk aversion among financial institutions.

• The company prioritized compliance, risk management, and operational efficiency, optimizing user and business mix to enhance resilience, and maintained a leading AI-empowered credit-tech platform serving 168 financial institutions and 65.6 million users as of June 30, 2026.

• Achieved 301.8 million cumulative consumer credit needs and 39.9 million cumulative borrowers with successful drawdown, up 8.5% year-over-year.

• Appointed Prof. Dong Lou as independent director and declared a semi-annual dividend of $0.46 per ADS for H1 2026.

Financial highlights

• Q2 2026 net revenue was RMB3,567 million, down from RMB3,909.3 million in Q1 and RMB5,216 million year-over-year.

• Non-GAAP net income was RMB454.9 million, down from RMB945.9 million in Q1 and RMB1,849 million a year ago; net income was RMB401.4 million.

• Total loan facilitation and origination volume reached RMB63.4 billion, down 2.5% sequentially and from RMB84.6 billion year-over-year.

• Cash and short-term investments totaled approximately RMB10.6 billion at quarter end.

• Outstanding loan balance at quarter-end was RMB107.6 billion.

Outlook and guidance

• Q3 2026 non-GAAP net income is expected between RMB400 million and RMB500 million, a year-on-year decline of 67%-73%.

• Management will maintain a cautious approach, focusing on risk control, efficiency, and capital preservation amid ongoing market volatility and regulatory changes.

• Loan volume is expected to decline meaningfully in Q3 due to tightened risk controls and funding constraints.

• Continued focus on expanding user base and deepening partnerships with financial institutions, emphasizing AI-driven credit assessment and risk management.