X Financial (XYF) investor relations material

Executive summary

• Maintained a conservative approach and tightened credit standards amid a challenging operating environment, prioritizing credit quality and risk management over origination volume.

• Loan origination and borrower activity declined sharply year-over-year and sequentially, reflecting a deliberate pullback and focus on higher-quality origination.

• Served over 6.7 million active borrowers in 2025, facilitating more than 12.8 million new loans and $18.7 billion in cumulative loan volume since inception.

• Focused on shifting origination to internal channels, tightening underwriting, automating processes, and investing in AI-driven infrastructure to improve efficiency.

• Leadership team with deep experience in fintech, risk management, and capital markets.

Financial highlights

• Total net revenue was RMB 1.18 billion in Q1 2026, down 39.3% year-over-year and 19.9% sequentially, driven by lower loan facilitation volumes.

• Net income for Q1 2026 was RMB 37.9 million, down 91.7% year-over-year; non-GAAP adjusted net income was RMB 81.2 million.

• Operating income was RMB 141 million with a 12% margin, down from 29.6% a year ago but up from 1.4% in Q4 2025.

• Loan facilitation service fees fell 74.9% year-over-year to RMB 270.7 million; guarantee income rose 211.5% to RMB 258.3 million.

• Net profit margin narrowed to 3.2% from 23.6% a year ago.

Outlook and guidance

• Near-term outlook remains cautious due to evolving regulatory environment and limited visibility.

• Q2 2026 loan origination expected between RMB 11.5 billion and RMB 12.5 billion, with focus on asset quality and profitability.

• Continued focus on capital preservation, disciplined origination, and cost control.

• Platform designed for compounding returns and scalable growth, not short-term volume.