X Financial Q2 Revenue Hits RMB 993.6M Amid Challenging Credit Market

X Financial (NYSE: XYF) announced its unaudited financial results for the second quarter ending June 30, 2026, revealing a focus on operational stability and technological upgrades in a complex economic climate. The China-based fintech company reported total net revenue of RMB 993.6 million and a net profit of RMB 47.0 million for the period.

Q2 Financial Highlights

According to the company's financial release, key performance indicators reflected a cautious operational approach in response to market conditions. The company maintained its focus on serving small and micro-enterprise owners.

• Total Loan Volume: RMB 11.63 billion was facilitated and provided.
• Total Net Revenue: RMB 993.6 million.
• Net Profit: RMB 47.0 million.
• Cumulative Active Borrowers: Reached 20.46 million as of June 30, 2026.

Navigating a Challenging Environment

Company executives acknowledged the pressures from declining loan volumes and a stringent credit environment. The firm's strategy has shifted to prioritize stability and risk management over aggressive growth.

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"In the second quarter of 2026, we continued to prioritize prudent credit assessment and conservative capital allocation," said Mr. Li Kan, President of X Financial. "Our focus remains on maintaining balance sheet resilience and operational flexibility."

Echoing this sentiment, CFO Mr. Zheng Fuya added, "As we navigate the evolving regulatory and operating environment, we will continue to maintain prudent capital management, adhere to cost control, and maintain ample liquidity."

AI Integration and Compliance

X Financial emphasized its continued investment in artificial intelligence to enhance efficiency and risk control across its entire service chain. The company highlighted its proprietary AI-powered risk management system, "WinPROT," which is designed to intelligently intercept potential fraud throughout the loan cycle.

In user services, the company has deployed a virtual digital assistant, "Win-Daidai," to handle standardized 24/7 inquiries, allowing human staff to focus on more complex customer needs. This dual approach aims to improve user experience while ensuring service records are standardized and traceable for compliance purposes.