Q2 2026 X Financial Earnings Call Transcript
Key Points
- Sequential improvement in credit quality with 31-60 day delinquency down to 1.73% from 2.61% and 91-180 day down to 9.09% from 9.95%.
- Operating margin improved to 19.6% from 12% in Q1 2026, reflecting cost control and efficiency gains.
- Net income rose 23.8% sequentially to RMB47 million, with non-GAAP adjusted net income up 104.3%.
- Strong balance sheet with equity-to-asset ratio of approximately 64% and ample liquidity of RMB2 billion in cash.
- Continued capital returns through share repurchases and a declared semiannual dividend of USD0.28 per ADS.
- Loan origination volume declined 70.2% year-over-year to RMB11.63 billion, reflecting ongoing contraction.
- Total net revenue fell 56.3% year-over-year to RMB993.6 million, with revenue still finding its floor.
- Delinquency rates remain well above prior year levels, with 91-180 day rate elevated at 9.09%.
- Net profit margin dropped to 4.7% from 23.2% a year ago, and return on equity was only 2.4%.
- No quantitative guidance for Q3 2026 due to material uncertainties, and a provision for credit losses on deposits increased to RMB95.3 million due to a funding partner issue.
Good day and welcome to the X Financial second-quarter 2026 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Victoria Yu. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining today's call. All financial results for the second quarter ended June 30, 2026, were released earlier today and are available on the company's Investor Relations website at ir.xiaoyinggroup.com. On the call today from X Financial are Mr. Kent Li, President; Mr. Frank Fuya Zheng, Chief Financial Officer,; and Mr. Noah Kauffman, Chief Financial Strategy Officer.
Mr. Li will begin with an overview of our business performance and key operational developments. Mr. Kauffman will then review the second-quarter financial performance, followed by Mr. Zheng, who will cover the detailed financial results, capital position, and outlook. After the prepared remarks, Mr. Li, Mr. Zheng, and Mr. Kauffman will be available to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
