X Financial (XYF) investor relations material

Executive summary

• Maintained disciplined operations with a focus on credit quality, liquidity, and balance sheet strength, prioritizing these over origination volume amid challenging conditions.

• Net revenue for Q2 2026 was RMB 993.6 million ($146.4 million), down 56.3% year-over-year and 15.5% sequentially, mainly due to lower loan facilitation volumes.

• Net income for Q2 2026 was RMB 47 million ($6.9 million), a 91.1% year-over-year decrease but a 23.8% sequential increase, reflecting lower operating contribution but reduced costs and provisions.

• Active borrowers declined 74.8% year-over-year to 720,258, while average loan amount per transaction increased to RMB 12,712.

• Platform emphasizes capital-light, high-ROE consumer lending with scalable, asset-light models and proprietary risk technology.

Financial highlights

• Total net revenue was RMB 993.6 million ($146.4 million), down 56.3% year-over-year and 15.5% sequentially.

• Net income was RMB 47 million ($6.9 million), up 23.8% from Q1 but down from RMB 528 million a year ago.

• Non-GAAP adjusted net income was RMB 166 million, up 104.3% sequentially, down 72% year-over-year.

• Operating margin improved to 19.6% from 12% in Q1, but below 29.7% a year ago.

• Net profit margin was 4.7%, up from 3.2% in Q1, but down from 23.2% a year ago.

Outlook and guidance

• No quantitative guidance for Q3 due to material uncertainties in the operating environment.

• Priorities remain capital preservation, disciplined origination, cost control, and balance sheet protection.

• Guidance will resume when visibility improves.

• Regulatory uncertainty in China’s internet-based lending sector may materially affect future results; historical profitability should not be assumed for the future.