{"success":true,"data":{"pressRelease":{"id":"125633","rtpr_id":"nPnbhp8K2a","ticker":"XYF","exchange":"NYSE","all_tickers":["XYF"],"title":"X Financial Reports Second Quarter 2026 Unaudited Financial Results","author":"PR Newswire","published_at":"2026-08-24T09:50:00.077Z","article_body":"X Financial Reports Second Quarter 2026 Unaudited Financial Results\n\nPR Newswire\n\nSHENZHEN, China, Aug. 24, 2026\n\nSHENZHEN, China, Aug. 24, 2026 /PRNewswire/ -- X Financial (NYSE: XYF), a\nleading Chinese fintech platform, today announced its unaudited financial\nresults for the second quarter ended June 30, 2026. This press release should\nbe read in conjunction with the Company's Report on Form 6-K for the second\nquarter ended June 30, 2026, which has been furnished to the U.S. Securities\nand Exchange Commission and is available on the SEC's website at www.sec.gov\n(https://www.sec.gov/) and on the Company's investor relations website at\nhttp://ir.xiaoyinggroup.com (http://ir.xiaoyinggroup.com/) .\n\nSecond Quarter 2026 Financial and Operational Highlights\n\n * Total net revenue in Q2 2026 was RMB993.6 million (US$146.4 million), a\ndecrease of 56.3% year-over-year and 15.5% quarter-over-quarter. The\nyear-over-year decline was mainly attributable to substantially lower loan\nfacilitation volumes, which reduced loan facilitation service revenue and\npost-origination service revenue, partially offset by higher guarantee income.\n * Total loan amount facilitated and originated([1]) in Q2 2026 was RMB11.63\nbillion, down 20.5% quarter-over-quarter and down 70.2% year-over-year.\n * Net income in Q2 2026 was RMB47.0 million (US$6.9 million), a decrease of\n91.1% year-over-year but an increase of 23.8% quarter-over-quarter, primarily\nreflecting the substantially lower operating contribution compared with the\nprior-year period, partially offset by lower operating costs and\ncredit-related provisions.\n * Delinquency rates for loans 31–60 days past due improved to 1.73% (from\n2.61% at the end of Q1 2026 and 1.16% a year ago); loans 91–180 days past\ndue improved to 9.09% (from 9.95% at the end of Q1 2026, though up from 2.91%\na year ago). Both delinquency rates improved sequentially but remained\nmaterially above prior-year levels, indicating that credit pressure remained\nelevated in the seasoned portfolio.\nMr. Kent Li, President of X Financial, commented: \"In the second quarter of\n2026, we facilitated and originated RMB11.6 billion in loans, a decline of\n20.5% from the prior quarter and 70.2% year-over-year. Borrower activity\ncontinued to contract, with active borrowers declining to approximately\n720,258, down 74.8% from a year ago, while the average loan amount increased\nto RMB12,712. The 31–60 day delinquency rate decreased to 1.73% from 2.61%\nin the prior quarter, and the 91–180 day rate eased to 9.09% from 9.95%.\nThese sequential improvements are constructive, but both delinquency rates\nremained above prior-year levels and the 91–180 day rate remained elevated.\nWe therefore continue to prioritize disciplined underwriting, collection\neffectiveness, and conservative capital deployment. While the business remains\nunder pressure from lower origination volumes and a challenging credit\nenvironment, our focus remains on preserving balance sheet resilience and\noperating flexibility.\"\n\nMr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: \"In the\nsecond quarter of 2026, total net revenue was RMB993.6 million, a decrease of\n56.3% from the same period last year and 15.5% sequentially. Net income was\nRMB47.0 million and non-GAAP adjusted net income was RMB165.8 million, both\nhigher than the prior quarter but substantially below the prior-year period.\nBasic earnings per ADS were RMB1.26, and non-GAAP adjusted earnings per ADS\nwere RMB4.44. Operating margin improved to 19.6% from 12.0% in the prior\nquarter, but remained below the 29.7% recorded in the same period of 2025. We\nwill continue to manage capital conservatively, maintain cost discipline, and\npreserve liquidity as we navigate the evolving regulatory and operating\nenvironment.\"\n ([1]) Represents the total amount of loans that the Company facilitated and\n originated during the relevant period.\n\nSecond Quarter 2026 GAAP and Non-GAAP Financial Summary\n (In thousands, except for share and per share data) Three Months Ended Three Months Ended Three Months Ended QoQ YoY\n June 30, 2025 March 31, 2026 June 30, 2026\n RMB RMB RMB\n Total net revenue 2,273,123 1,176,139 993,581 (15.5 %) (56.3 %)\n Total operating costs and expenses (1,598,067) (1,035,481) (798,633) (22.9 %) (50.0 %)\n Income from operations 675,056 140,658 194,948 38.6 % (71.1 %)\n Net income 528,016 37,947 46,983 23.8 % (91.1 %)\n Non-GAAP adjusted net income 593,215 81,180 165,837 104.3 % (72.0 %)\n\n Net income per ADS—basic 12.60 0.96 1.26 31.3 % (90.0 %)\n Net income per ADS—diluted 12.00 0.96 1.26 31.3 % (89.5 %)\n\n Non-GAAP adjusted net income per ADS—basic 14.16 2.10 4.44 111.4 % (68.6 %)\n Non-GAAP adjusted net income per ADS—diluted 13.50 2.04 4.38 114.7 % (67.6 %)\n\nCapital Return\n\n * Capital Return to Shareholders: From January 1, 2026 through August 14, X\nFinancial repurchased an aggregate of approximately 2.63 million ADSs, for a\ntotal consideration of approximately US$12.49 million under its share\nrepurchase programs. The Company now has approximately US$35.50 million\nremaining under its existing US$100 million share repurchase program, which is\neffective through November 30, 2026. This program reflects the Company's\ncommitment to returning capital to shareholders and enhancing long-term\nshareholder value, subject to ongoing assessment of market and regulatory\nconditions. Repurchases under the program remain subject to market conditions\nand other factors and may be modified or suspended at management's discretion.\n * Declaration of Semi-Annual Dividend: Pursuant to the semi-annual dividend\npolicy, the Board today approved the declaration and payment of a semi-annual\ndividend of US$0.28 per ADS (approximately US$0.0467 per ordinary share). The\nholders of the Company's ordinary shares shown on the Company's record at the\nclose of trading on September 10, 2026 (U.S. Eastern Daylight Time) will be\nentitled to the semi-annual dividend. These shareholders, including the Bank\nof New York Mellon, the depositary of our ADS program (the \"Depositary\"), will\nreceive the payments of dividends on or about September 28, 2026. Dividends to\nthe Company's ADS holders will be paid by the Depositary on or after September\n28, 2026, and the precise timing of receipt will vary based on the processing\nefficiency of the respective holding brokerage.\nRegulatory Update\n\nThe regulatory environment governing internet-based lending in the People's\nRepublic of China continued to evolve during the second quarter of 2026, with\nauthorities maintaining heightened oversight across the consumer credit\nbusiness chain. The Company continues to monitor these developments closely;\nhowever, management has limited visibility into the ultimate scope and\ndirection of implementation. If current and emerging regulatory requirements\nare implemented as currently understood, the Company's operating results may\nbe materially and adversely affected, and historical levels of profitability\nshould not be assumed to be indicative of future performance.\n\nConference Call\n\nX Financial's management team will host an earnings conference call at 8:30 AM\nU.S. Eastern Time on August 24, 2026 (8:30 PM Beijing / Hong Kong Time on\nAugust 24, 2026).\n\nDial-in details for the earnings conference call are as follows:\n United States: 1-888-346-8982\n Hong Kong: 800-905945\n Mainland China: 4001-201203\n International: 1-412-902-4272\n Passcode: X Financial\n\nPlease dial in ten minutes before the call is scheduled to begin and provide\nthe passcode to join the call.\n\nA replay of the conference call may be accessed by phone at the following\nnumbers until August 31, 2026:\n United States: 1-855-669-9658\n International: 1-412-317-0088\n Passcode: 2955666\n\nAdditional Information\n\nThis press release contains highlights only. For the Company's complete\nfinancial results and management's discussion and analysis for the second\nquarter ended June 30, 2026, please refer to the Form 6-K filed with the U.S.\nSecurities and Exchange Commission on August 24, 2026.\n\nAbout X Financial\n\nX Financial (NYSE: XYF) (the \"Company\") is a leading Chinese fintech platform.\nThe Company is committed to connecting borrowers on its platform with its\ninstitutional funding partners. With its proprietary big data-driven\ntechnology, the Company has established strategic partnerships with financial\ninstitutions across multiple areas of its business operations, enabling it to\nfacilitate and originate loans to prime borrowers under a risk assessment and\ncontrol system.\n\nFor more information, please visit http://ir.xiaoyinggroup.com\n(http://ir.xiaoyinggroup.com/) .\n\nUse of Non-GAAP Financial Measures\n\nIn evaluating our business, we consider and use non-GAAP measures as\nsupplemental measures to review and assess our operating performance. We\npresent the non-GAAP financial measures because they are used by our\nmanagement to evaluate our operating performance and formulate business plans.\nWe believe that the use of the non-GAAP financial measures facilitates\ninvestors' assessment of our operating performance and help investors to\nidentify underlying trends in our business that could otherwise be distorted\nby the effect of certain income or expenses that we include in income (loss)\nfrom operations and net income (loss). We also believe that the non-GAAP\nmeasures provide useful information about our core operating results, enhance\nthe overall understanding of our past performance and future prospects and\nallow for greater visibility with respect to key metrics used by our\nmanagement in its financial and operational decision-making.\n\nWe use in this press release the following non-GAAP financial measures: (i)\nadjusted net income (loss), (ii) adjusted net income (loss) per basic ADS,\n(iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net income\n(loss) per basic share, and (v) adjusted net income (loss) per diluted share,\neach of which excludes share-based compensation expense, impairment losses on\nfinancial investments, income (loss) from financial investments, gain (loss)\nfrom financial investments at equity method and impairment losses on long-term\ninvestments. These non-GAAP financial measures have limitations as analytical\ntools, and when assessing our operating performance, investors should not\nconsider them in isolation, or as a substitute for the financial information\nprepared and presented in accordance with U.S. GAAP.\n\nWe mitigate these limitations by reconciling the non-GAAP financial measures\nto the most directly comparable U.S. GAAP financial measures, which should be\nconsidered when evaluating our performance. We encourage you to review our\nfinancial information in its entirety and not rely on a single financial\nmeasure.\n\nFor more information on these non-GAAP financial measures, please see the\ntable captioned \"Unaudited Reconciliations of GAAP and Non-GAAP results\" set\nforth at the end of this press release.\n\nExchange Rate Information\n\nThis press release contains translations of certain RMB amounts into U.S.\ndollars at specified rates solely for the convenience of the reader. Unless\notherwise noted, all translations from RMB to U.S. dollars are made at a rate\nof RMB6.7851 to US$1.00, the exchange rate in effect as of June 30, 2026, as\npublished in the Federal Reserve Board's H.10 statistical release. Percentages\nstated in this release are calculated based on the RMB amounts.\n\nDisclaimer\n\nSafe Harbor Statement\n\nThis announcement contains forward-looking statements within the meaning of\nSection 21E of the Securities Exchange Act of 1934, as amended. These\nforward-looking statements are made under the \"safe harbor\" provisions of the\nU.S. Private Securities Litigation Reform Act of 1995. These statements can be\nidentified by terminology such as \"will,\" \"expects,\" \"anticipates,\" \"future,\"\n\"intends,\" \"plans,\" \"believes,\" \"estimates,\" \"potential,\" \"continue,\"\n\"ongoing,\" \"targets,\" \"guidance\" and similar statements. The Company may also\nmake written or oral forward-looking statements in its periodic reports to the\nU.S. Securities and Exchange Commission (the \"SEC\"), in its annual report to\nshareholders, in press releases and other written materials and in oral\nstatements made by its officers, directors or employees to third parties. Any\nstatements that are not historical facts, including statements about the\nCompany's beliefs and expectations, are forward-looking statements that\ninvolve factors, risks and uncertainties that could cause actual results to\ndiffer materially from those in the forward-looking statements. Such factors\nand risks include, but not limited to the following: the Company's goals and\nstrategies; its future business development, financial condition and results\nof operations; the expected growth of the credit industry, and marketplace\nlending in particular, in China; the demand for and market acceptance of its\nmarketplace's products and services; its ability to attract and retain\nborrowers and investors on its marketplace; its relationships with its\nstrategic cooperation partners; competition in its industry; and relevant\ngovernment policies and regulations relating to the corporate structure,\nbusiness and industry. Further information regarding these and other risks,\nuncertainties or factors is included in the Company's filings with the SEC.\nAll information provided in this announcement is current as of the date of\nthis announcement, and the Company does not undertake any obligation to update\nsuch information, except as required under applicable law.\n\nFor more information, please contact:\n\nX Financial\nMr. Noah Kauffman (Chief Financial Strategy Officer)\nE-mail: ir@xiaoying.com (mailto:ir@xiaoying.com)\n\n \n X Financial\n Unaudited Condensed Consolidated Balance Sheets\n\n (In thousands, except for share and per share data) As of December 31, As of June 30, 2026 As of June 30, 2026\n 2025\n RMB RMB USD\n ASSETS\n Cash and cash equivalents 987,631 1,131,736 166,797\n Restricted cash, net 1,145,962 827,667 121,983\n Accounts receivable and contract assets, net 3,145,976 1,377,377 203,000\n Loans receivable from Credit Loans and other loans, net 5,298,631 4,137,175 609,746\n Deposits to institutional cooperators, net 1,713,593 882,907 130,124\n Prepaid expenses and other current assets 43,547 36,215 5,337\n Deferred tax assets, net 455,358 486,393 71,685\n Long term investments 515,524 373,233 55,008\n Property and equipment, net 23,900 24,505 3,612\n Intangible assets, net 39,183 38,229 5,634\n Financial investments 1,243,076 2,738,006 403,532\n Other non-current assets 53,364 48,814 7,194\n TOTAL ASSETS 14,665,745 12,102,257 1,783,652\n\n LIABILITIES\n Payable to investors and institutional funding partners at amortized cost 3,054,982 1,583,818 233,426\n Contingent guarantee liabilities 748,307 409,806 60,398\n Deferred guarantee income 467,629 392,787 57,890\n Financial guarantee derivative 15,426 12,194 1,797\n Short-term borrowings 409,530 396,208 58,394\n Accrued payroll and welfare 76,058 43,545 6,418\n Other tax payable 221,940 108,620 16,007\n Income tax payable 677,521 659,051 97,132\n Accrued expenses and other current liabilities 1,053,071 688,895 101,531\n Other non-current liabilities 34,807 28,904 4,260\n Deferred tax liabilities 69,673 22,986 3,388\n TOTAL LIABILITIES 6,828,944 4,346,814 640,641\n\n Commitments and Contingencies\n Equity:\n Common shares (234,517,901 and 221,600,267 shares outstanding as of December 207 207 31\n 31, 2025\n and June 30, 2026, respectively)\n Treasury stock (967,773) (1,040,284) (153,319)\n Additional paid-in capital 3,256,349 3,259,861 480,444\n Retained earnings 5,484,294 5,496,426 810,073\n Other comprehensive income 63,724 39,233 5,782\n TOTAL EQUITY 7,836,801 7,755,443 1,143,011\n\n TOTAL LIABILITIES AND EQUITY 14,665,745 12,102,257 1,783,652\n\n \n X Financial\n Unaudited Condensed Consolidated Statements of Comprehensive Income\n\n Three Months Ended June 30, Six Months Ended June 30,\n (In thousands, except for share and per share data) 2025 2026 2026 2025 2026 2026\n RMB RMB USD RMB RMB USD\n Net revenues\n Loan facilitation service 1,369,443 198,599 29,270 2,447,823 469,313 69,168\n Post-origination service 271,407 159,575 23,518 537,448 355,781 52,436\n Financing income 319,938 277,655 40,921 630,078 615,429 90,703\n Guarantee income 102,570 224,926 33,150 185,498 483,220 71,218\n Other revenue 209,765 132,826 19,577 409,781 245,977 36,252\n Total net revenue 2,273,123 993,581 146,436 4,210,628 2,169,720 319,777\n\n Operating costs and expenses:\n Origination and servicing 513,974 420,983 62,045 987,699 906,347 133,579\n Borrower acquisitions and marketing 756,264 149,506 22,034 1,465,271 369,266 54,423\n General and administrative 49,539 46,264 6,818 101,284 93,385 13,763\n Provision for accounts receivable and contract assets 33,360 20,124 2,966 42,408 50,902 7,502\n Provision for loans receivable 46,394 10,071 1,484 108,590 62,397 9,196\n Provision for contingent guarantee liabilities 207,383 57,553 8,482 271,130 257,562 37,960\n Change in fair value of financial guarantee derivative (9,574) (1,196) (176) (14,991) (856) (126)\n Provision for credit losses for deposits and other financial assets 727 95,328 14,050 1,276 95,111 14,018\n Total operating costs and expenses 1,598,067 798,633 117,703 2,962,667 1,834,114 270,315\n\n Income from operations 675,056 194,948 28,733 1,247,961 335,606 49,462\n Interest income 8,927 16,491 2,430 11,848 23,805 3,508\n Interest expenses (4,943) (1,558) (230) (10,583) (3,625) (534)\n Foreign exchange gain (loss) 2,101 3,161 466 (10,381) 6,184 911\n (Loss) income from financial investments (15,378) 6,921 1,020 (19,056) 5,043 743\n Impairment losses on financial investments - (1,539) (227) - (8,254) (1,216)\n Other income (loss), net 221 1,550 228 2,156 (1,941) (286)\n\n Income before income taxes 665,984 219,974 32,420 1,221,945 356,818 52,588\n\n Income tax expense (110,795) (54,549) (8,040) (227,323) (126,755) (18,681)\n Gain (loss) from equity in affiliates, net of tax 9,830 (111,981) (16,504) 7,647 (106,873) (15,751)\n Loss from financial investments at equity method, net of tax (37,003) (6,461) (952) (16,126) (38,261) (5,639)\n Net income 528,016 46,983 6,924 986,143 84,929 12,517\n Less: net income attributable to non-controlling interests - - - - - -\n Net income attributable to X Financial shareholders 528,016 46,983 6,924 986,143 84,929 12,517\n\n Net income 528,016 46,983 6,924 986,143 84,929 12,517\n Other comprehensive income, net of tax of nil:\n Gain from equity in affiliates 184 113 17 184 155 23\n Loss from financial investments - - - (768) - -\n Foreign currency translation adjustments (2,995) (11,866) (1,749) (3,194) (24,646) (3,632)\n Comprehensive income 525,205 35,230 5,192 982,365 60,438 8,908\n Less: comprehensive income attributable to non-controlling interests - - - - - -\n Comprehensive income attributable to X Financial shareholders 525,205 35,230 5,192 982,365 60,438 8,908\n\n Net income per share—basic 2.10 0.21 0.03 3.91 0.37 0.05\n Net income per share—diluted 2.00 0.21 0.03 3.75 0.37 0.05\n\n Net income per ADS—basic 12.60 1.26 0.19 23.46 2.22 0.33\n Net income per ADS—diluted 12.00 1.26 0.19 22.50 2.22 0.33\n\n Weighted average number of ordinary shares outstanding—basic 251,566,501 225,263,539 225,263,539 251,927,644 229,678,786 229,678,786\n Weighted average number of ordinary shares outstanding—diluted 263,948,357 227,553,000 227,553,000 263,019,346 231,984,748 231,984,748\n\n \n X Financial\n Unaudited Reconciliations of GAAP and Non-GAAP Results\n\n Three Months Ended June 30, Six Months Ended June 30,\n (In thousands, except for share and per share data) 2025 2026 2026 2025 2026 2026\n RMB RMB USD RMB RMB USD\n GAAP net income 528,016 46,983 6,924 986,143 84,929 12,517\n Less: (Loss) income from financial investments (net of tax of nil) (15,378) 6,921 1,020 (19,056) 5,043 743\n Less: Impairment losses on financial investments (net of tax of nil) - (1,539) (227) - (8,254) (1,216)\n Less: Impairment losses on long-term investments (net of tax) - (114,925) (16,938) - (114,925) (16,938)\n Less: Loss from financial investments at equity method (net of tax of nil) (37,003) (6,461) (952) (16,126) (38,261) (5,639)\n Add: Share-based compensation expenses (net of tax of nil) 12,818 2,850 420 38,656 5,690 839\n Non-GAAP adjusted net income 593,215 165,837 24,441 1,059,981 247,016 36,406\n\n Non-GAAP adjusted net income per share—basic 2.36 0.74 0.11 4.21 1.08 0.16\n Non-GAAP adjusted net income per share—diluted 2.25 0.73 0.11 4.03 1.06 0.16\n\n Non-GAAP adjusted net income per ADS—basic 14.16 4.44 0.65 25.26 6.48 0.96\n Non-GAAP adjusted net income per ADS—diluted 13.50 4.38 0.65 24.18 6.36 0.94\n\n Weighted average number of ordinary shares outstanding—basic 251,566,501 225,263,539 225,263,539 251,927,644 229,678,786 229,678,786\n Weighted average number of ordinary shares outstanding—diluted 263,948,357 227,553,000 227,553,000 263,019,346 231,984,748 231,984,748\n\n \n\nView original\ncontent:https://www.prnewswire.com/news-releases/x-financial-reports-second-quarter-2026-unaudited-financial-results-302857650.html\n(https://www.prnewswire.com/news-releases/x-financial-reports-second-quarter-2026-unaudited-financial-results-302857650.html)\n\nSOURCE X Financial\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPnbhp8K2a","title":"X Financial Reports Second Quarter 2026 Unaudited Financial Results","author":"PR Newswire","ticker":"XYF","created":"2026-08-24T09:50:00.077Z","tickers":["XYF"],"exchange":"NYSE","article_body":"X Financial Reports Second Quarter 2026 Unaudited Financial Results\n\nPR Newswire\n\nSHENZHEN, China, Aug. 24, 2026\n\nSHENZHEN, China, Aug. 24, 2026 /PRNewswire/ -- X Financial (NYSE: XYF), a\nleading Chinese fintech platform, today announced its unaudited financial\nresults for the second quarter ended June 30, 2026. This press release should\nbe read in conjunction with the Company's Report on Form 6-K for the second\nquarter ended June 30, 2026, which has been furnished to the U.S. Securities\nand Exchange Commission and is available on the SEC's website at www.sec.gov\n(https://www.sec.gov/) and on the Company's investor relations website at\nhttp://ir.xiaoyinggroup.com (http://ir.xiaoyinggroup.com/) .\n\nSecond Quarter 2026 Financial and Operational Highlights\n\n * Total net revenue in Q2 2026 was RMB993.6 million (US$146.4 million), a\ndecrease of 56.3% year-over-year and 15.5% quarter-over-quarter. The\nyear-over-year decline was mainly attributable to substantially lower loan\nfacilitation volumes, which reduced loan facilitation service revenue and\npost-origination service revenue, partially offset by higher guarantee income.\n * Total loan amount facilitated and originated([1]) in Q2 2026 was RMB11.63\nbillion, down 20.5% quarter-over-quarter and down 70.2% year-over-year.\n * Net income in Q2 2026 was RMB47.0 million (US$6.9 million), a decrease of\n91.1% year-over-year but an increase of 23.8% quarter-over-quarter, primarily\nreflecting the substantially lower operating contribution compared with the\nprior-year period, partially offset by lower operating costs and\ncredit-related provisions.\n * Delinquency rates for loans 31–60 days past due improved to 1.73% (from\n2.61% at the end of Q1 2026 and 1.16% a year ago); loans 91–180 days past\ndue improved to 9.09% (from 9.95% at the end of Q1 2026, though up from 2.91%\na year ago). Both delinquency rates improved sequentially but remained\nmaterially above prior-year levels, indicating that credit pressure remained\nelevated in the seasoned portfolio.\nMr. Kent Li, President of X Financial, commented: \"In the second quarter of\n2026, we facilitated and originated RMB11.6 billion in loans, a decline of\n20.5% from the prior quarter and 70.2% year-over-year. Borrower activity\ncontinued to contract, with active borrowers declining to approximately\n720,258, down 74.8% from a year ago, while the average loan amount increased\nto RMB12,712. The 31–60 day delinquency rate decreased to 1.73% from 2.61%\nin the prior quarter, and the 91–180 day rate eased to 9.09% from 9.95%.\nThese sequential improvements are constructive, but both delinquency rates\nremained above prior-year levels and the 91–180 day rate remained elevated.\nWe therefore continue to prioritize disciplined underwriting, collection\neffectiveness, and conservative capital deployment. While the business remains\nunder pressure from lower origination volumes and a challenging credit\nenvironment, our focus remains on preserving balance sheet resilience and\noperating flexibility.\"\n\nMr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: \"In the\nsecond quarter of 2026, total net revenue was RMB993.6 million, a decrease of\n56.3% from the same period last year and 15.5% sequentially. Net income was\nRMB47.0 million and non-GAAP adjusted net income was RMB165.8 million, both\nhigher than the prior quarter but substantially below the prior-year period.\nBasic earnings per ADS were RMB1.26, and non-GAAP adjusted earnings per ADS\nwere RMB4.44. Operating margin improved to 19.6% from 12.0% in the prior\nquarter, but remained below the 29.7% recorded in the same period of 2025. We\nwill continue to manage capital conservatively, maintain cost discipline, and\npreserve liquidity as we navigate the evolving regulatory and operating\nenvironment.\"\n ([1]) Represents the total amount of loans that the Company facilitated and\n originated during the relevant period.\n\nSecond Quarter 2026 GAAP and Non-GAAP Financial Summary\n (In thousands, except for share and per share data) Three Months Ended Three Months Ended Three Months Ended QoQ YoY\n June 30, 2025 March 31, 2026 June 30, 2026\n RMB RMB RMB\n Total net revenue 2,273,123 1,176,139 993,581 (15.5 %) (56.3 %)\n Total operating costs and expenses (1,598,067) (1,035,481) (798,633) (22.9 %) (50.0 %)\n Income from operations 675,056 140,658 194,948 38.6 % (71.1 %)\n Net income 528,016 37,947 46,983 23.8 % (91.1 %)\n Non-GAAP adjusted net income 593,215 81,180 165,837 104.3 % (72.0 %)\n\n Net income per ADS—basic 12.60 0.96 1.26 31.3 % (90.0 %)\n Net income per ADS—diluted 12.00 0.96 1.26 31.3 % (89.5 %)\n\n Non-GAAP adjusted net income per ADS—basic 14.16 2.10 4.44 111.4 % (68.6 %)\n Non-GAAP adjusted net income per ADS—diluted 13.50 2.04 4.38 114.7 % (67.6 %)\n\nCapital Return\n\n * Capital Return to Shareholders: From January 1, 2026 through August 14, X\nFinancial repurchased an aggregate of approximately 2.63 million ADSs, for a\ntotal consideration of approximately US$12.49 million under its share\nrepurchase programs. The Company now has approximately US$35.50 million\nremaining under its existing US$100 million share repurchase program, which is\neffective through November 30, 2026. This program reflects the Company's\ncommitment to returning capital to shareholders and enhancing long-term\nshareholder value, subject to ongoing assessment of market and regulatory\nconditions. Repurchases under the program remain subject to market conditions\nand other factors and may be modified or suspended at management's discretion.\n * Declaration of Semi-Annual Dividend: Pursuant to the semi-annual dividend\npolicy, the Board today approved the declaration and payment of a semi-annual\ndividend of US$0.28 per ADS (approximately US$0.0467 per ordinary share). The\nholders of the Company's ordinary shares shown on the Company's record at the\nclose of trading on September 10, 2026 (U.S. Eastern Daylight Time) will be\nentitled to the semi-annual dividend. These shareholders, including the Bank\nof New York Mellon, the depositary of our ADS program (the \"Depositary\"), will\nreceive the payments of dividends on or about September 28, 2026. Dividends to\nthe Company's ADS holders will be paid by the Depositary on or after September\n28, 2026, and the precise timing of receipt will vary based on the processing\nefficiency of the respective holding brokerage.\nRegulatory Update\n\nThe regulatory environment governing internet-based lending in the People's\nRepublic of China continued to evolve during the second quarter of 2026, with\nauthorities maintaining heightened oversight across the consumer credit\nbusiness chain. The Company continues to monitor these developments closely;\nhowever, management has limited visibility into the ultimate scope and\ndirection of implementation. If current and emerging regulatory requirements\nare implemented as currently understood, the Company's operating results may\nbe materially and adversely affected, and historical levels of profitability\nshould not be assumed to be indicative of future performance.\n\nConference Call\n\nX Financial's management team will host an earnings conference call at 8:30 AM\nU.S. Eastern Time on August 24, 2026 (8:30 PM Beijing / Hong Kong Time on\nAugust 24, 2026).\n\nDial-in details for the earnings conference call are as follows:\n United States: 1-888-346-8982\n Hong Kong: 800-905945\n Mainland China: 4001-201203\n International: 1-412-902-4272\n Passcode: X Financial\n\nPlease dial in ten minutes before the call is scheduled to begin and provide\nthe passcode to join the call.\n\nA replay of the conference call may be accessed by phone at the following\nnumbers until August 31, 2026:\n United States: 1-855-669-9658\n International: 1-412-317-0088\n Passcode: 2955666\n\nAdditional Information\n\nThis press release contains highlights only. For the Company's complete\nfinancial results and management's discussion and analysis for the second\nquarter ended June 30, 2026, please refer to the Form 6-K filed with the U.S.\nSecurities and Exchange Commission on August 24, 2026.\n\nAbout X Financial\n\nX Financial (NYSE: XYF) (the \"Company\") is a leading Chinese fintech platform.\nThe Company is committed to connecting borrowers on its platform with its\ninstitutional funding partners. With its proprietary big data-driven\ntechnology, the Company has established strategic partnerships with financial\ninstitutions across multiple areas of its business operations, enabling it to\nfacilitate and originate loans to prime borrowers under a risk assessment and\ncontrol system.\n\nFor more information, please visit http://ir.xiaoyinggroup.com\n(http://ir.xiaoyinggroup.com/) .\n\nUse of Non-GAAP Financial Measures\n\nIn evaluating our business, we consider and use non-GAAP measures as\nsupplemental measures to review and assess our operating performance. We\npresent the non-GAAP financial measures because they are used by our\nmanagement to evaluate our operating performance and formulate business plans.\nWe believe that the use of the non-GAAP financial measures facilitates\ninvestors' assessment of our operating performance and help investors to\nidentify underlying trends in our business that could otherwise be distorted\nby the effect of certain income or expenses that we include in income (loss)\nfrom operations and net income (loss). We also believe that the non-GAAP\nmeasures provide useful information about our core operating results, enhance\nthe overall understanding of our past performance and future prospects and\nallow for greater visibility with respect to key metrics used by our\nmanagement in its financial and operational decision-making.\n\nWe use in this press release the following non-GAAP financial measures: (i)\nadjusted net income (loss), (ii) adjusted net income (loss) per basic ADS,\n(iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net income\n(loss) per basic share, and (v) adjusted net income (loss) per diluted share,\neach of which excludes share-based compensation expense, impairment losses on\nfinancial investments, income (loss) from financial investments, gain (loss)\nfrom financial investments at equity method and impairment losses on long-term\ninvestments. These non-GAAP financial measures have limitations as analytical\ntools, and when assessing our operating performance, investors should not\nconsider them in isolation, or as a substitute for the financial information\nprepared and presented in accordance with U.S. GAAP.\n\nWe mitigate these limitations by reconciling the non-GAAP financial measures\nto the most directly comparable U.S. GAAP financial measures, which should be\nconsidered when evaluating our performance. We encourage you to review our\nfinancial information in its entirety and not rely on a single financial\nmeasure.\n\nFor more information on these non-GAAP financial measures, please see the\ntable captioned \"Unaudited Reconciliations of GAAP and Non-GAAP results\" set\nforth at the end of this press release.\n\nExchange Rate Information\n\nThis press release contains translations of certain RMB amounts into U.S.\ndollars at specified rates solely for the convenience of the reader. Unless\notherwise noted, all translations from RMB to U.S. dollars are made at a rate\nof RMB6.7851 to US$1.00, the exchange rate in effect as of June 30, 2026, as\npublished in the Federal Reserve Board's H.10 statistical release. Percentages\nstated in this release are calculated based on the RMB amounts.\n\nDisclaimer\n\nSafe Harbor Statement\n\nThis announcement contains forward-looking statements within the meaning of\nSection 21E of the Securities Exchange Act of 1934, as amended. These\nforward-looking statements are made under the \"safe harbor\" provisions of the\nU.S. Private Securities Litigation Reform Act of 1995. These statements can be\nidentified by terminology such as \"will,\" \"expects,\" \"anticipates,\" \"future,\"\n\"intends,\" \"plans,\" \"believes,\" \"estimates,\" \"potential,\" \"continue,\"\n\"ongoing,\" \"targets,\" \"guidance\" and similar statements. The Company may also\nmake written or oral forward-looking statements in its periodic reports to the\nU.S. Securities and Exchange Commission (the \"SEC\"), in its annual report to\nshareholders, in press releases and other written materials and in oral\nstatements made by its officers, directors or employees to third parties. Any\nstatements that are not historical facts, including statements about the\nCompany's beliefs and expectations, are forward-looking statements that\ninvolve factors, risks and uncertainties that could cause actual results to\ndiffer materially from those in the forward-looking statements. Such factors\nand risks include, but not limited to the following: the Company's goals and\nstrategies; its future business development, financial condition and results\nof operations; the expected growth of the credit industry, and marketplace\nlending in particular, in China; the demand for and market acceptance of its\nmarketplace's products and services; its ability to attract and retain\nborrowers and investors on its marketplace; its relationships with its\nstrategic cooperation partners; competition in its industry; and relevant\ngovernment policies and regulations relating to the corporate structure,\nbusiness and industry. Further information regarding these and other risks,\nuncertainties or factors is included in the Company's filings with the SEC.\nAll information provided in this announcement is current as of the date of\nthis announcement, and the Company does not undertake any obligation to update\nsuch information, except as required under applicable law.\n\nFor more information, please contact:\n\nX Financial\nMr. Noah Kauffman (Chief Financial Strategy Officer)\nE-mail: ir@xiaoying.com (mailto:ir@xiaoying.com)\n\n \n X Financial\n Unaudited Condensed Consolidated Balance Sheets\n\n (In thousands, except for share and per share data) As of December 31, As of June 30, 2026 As of June 30, 2026\n 2025\n RMB RMB USD\n ASSETS\n Cash and cash equivalents 987,631 1,131,736 166,797\n Restricted cash, net 1,145,962 827,667 121,983\n Accounts receivable and contract assets, net 3,145,976 1,377,377 203,000\n Loans receivable from Credit Loans and other loans, net 5,298,631 4,137,175 609,746\n Deposits to institutional cooperators, net 1,713,593 882,907 130,124\n Prepaid expenses and other current assets 43,547 36,215 5,337\n Deferred tax assets, net 455,358 486,393 71,685\n Long term investments 515,524 373,233 55,008\n Property and equipment, net 23,900 24,505 3,612\n Intangible assets, net 39,183 38,229 5,634\n Financial investments 1,243,076 2,738,006 403,532\n Other non-current assets 53,364 48,814 7,194\n TOTAL ASSETS 14,665,745 12,102,257 1,783,652\n\n LIABILITIES\n Payable to investors and institutional funding partners at amortized cost 3,054,982 1,583,818 233,426\n Contingent guarantee liabilities 748,307 409,806 60,398\n Deferred guarantee income 467,629 392,787 57,890\n Financial guarantee derivative 15,426 12,194 1,797\n Short-term borrowings 409,530 396,208 58,394\n Accrued payroll and welfare 76,058 43,545 6,418\n Other tax payable 221,940 108,620 16,007\n Income tax payable 677,521 659,051 97,132\n Accrued expenses and other current liabilities 1,053,071 688,895 101,531\n Other non-current liabilities 34,807 28,904 4,260\n Deferred tax liabilities 69,673 22,986 3,388\n TOTAL LIABILITIES 6,828,944 4,346,814 640,641\n\n Commitments and Contingencies\n Equity:\n Common shares (234,517,901 and 221,600,267 shares outstanding as of December 207 207 31\n 31, 2025\n and June 30, 2026, respectively)\n Treasury stock (967,773) (1,040,284) (153,319)\n Additional paid-in capital 3,256,349 3,259,861 480,444\n Retained earnings 5,484,294 5,496,426 810,073\n Other comprehensive income 63,724 39,233 5,782\n TOTAL EQUITY 7,836,801 7,755,443 1,143,011\n\n TOTAL LIABILITIES AND EQUITY 14,665,745 12,102,257 1,783,652\n\n \n X Financial\n Unaudited Condensed Consolidated Statements of Comprehensive Income\n\n Three Months Ended June 30, Six Months Ended June 30,\n (In thousands, except for share and per share data) 2025 2026 2026 2025 2026 2026\n RMB RMB USD RMB RMB USD\n Net revenues\n Loan facilitation service 1,369,443 198,599 29,270 2,447,823 469,313 69,168\n Post-origination service 271,407 159,575 23,518 537,448 355,781 52,436\n Financing income 319,938 277,655 40,921 630,078 615,429 90,703\n Guarantee income 102,570 224,926 33,150 185,498 483,220 71,218\n Other revenue 209,765 132,826 19,577 409,781 245,977 36,252\n Total net revenue 2,273,123 993,581 146,436 4,210,628 2,169,720 319,777\n\n Operating costs and expenses:\n Origination and servicing 513,974 420,983 62,045 987,699 906,347 133,579\n Borrower acquisitions and marketing 756,264 149,506 22,034 1,465,271 369,266 54,423\n General and administrative 49,539 46,264 6,818 101,284 93,385 13,763\n Provision for accounts receivable and contract assets 33,360 20,124 2,966 42,408 50,902 7,502\n Provision for loans receivable 46,394 10,071 1,484 108,590 62,397 9,196\n Provision for contingent guarantee liabilities 207,383 57,553 8,482 271,130 257,562 37,960\n Change in fair value of financial guarantee derivative (9,574) (1,196) (176) (14,991) (856) (126)\n Provision for credit losses for deposits and other financial assets 727 95,328 14,050 1,276 95,111 14,018\n Total operating costs and expenses 1,598,067 798,633 117,703 2,962,667 1,834,114 270,315\n\n Income from operations 675,056 194,948 28,733 1,247,961 335,606 49,462\n Interest income 8,927 16,491 2,430 11,848 23,805 3,508\n Interest expenses (4,943) (1,558) (230) (10,583) (3,625) (534)\n Foreign exchange gain (loss) 2,101 3,161 466 (10,381) 6,184 911\n (Loss) income from financial investments (15,378) 6,921 1,020 (19,056) 5,043 743\n Impairment losses on financial investments - (1,539) (227) - (8,254) (1,216)\n Other income (loss), net 221 1,550 228 2,156 (1,941) (286)\n\n Income before income taxes 665,984 219,974 32,420 1,221,945 356,818 52,588\n\n Income tax expense (110,795) (54,549) (8,040) (227,323) (126,755) (18,681)\n Gain (loss) from equity in affiliates, net of tax 9,830 (111,981) (16,504) 7,647 (106,873) (15,751)\n Loss from financial investments at equity method, net of tax (37,003) (6,461) (952) (16,126) (38,261) (5,639)\n Net income 528,016 46,983 6,924 986,143 84,929 12,517\n Less: net income attributable to non-controlling interests - - - - - -\n Net income attributable to X Financial shareholders 528,016 46,983 6,924 986,143 84,929 12,517\n\n Net income 528,016 46,983 6,924 986,143 84,929 12,517\n Other comprehensive income, net of tax of nil:\n Gain from equity in affiliates 184 113 17 184 155 23\n Loss from financial investments - - - (768) - -\n Foreign currency translation adjustments (2,995) (11,866) (1,749) (3,194) (24,646) (3,632)\n Comprehensive income 525,205 35,230 5,192 982,365 60,438 8,908\n Less: comprehensive income attributable to non-controlling interests - - - - - -\n Comprehensive income attributable to X Financial shareholders 525,205 35,230 5,192 982,365 60,438 8,908\n\n Net income per share—basic 2.10 0.21 0.03 3.91 0.37 0.05\n Net income per share—diluted 2.00 0.21 0.03 3.75 0.37 0.05\n\n Net income per ADS—basic 12.60 1.26 0.19 23.46 2.22 0.33\n Net income per ADS—diluted 12.00 1.26 0.19 22.50 2.22 0.33\n\n Weighted average number of ordinary shares outstanding—basic 251,566,501 225,263,539 225,263,539 251,927,644 229,678,786 229,678,786\n Weighted average number of ordinary shares outstanding—diluted 263,948,357 227,553,000 227,553,000 263,019,346 231,984,748 231,984,748\n\n \n X Financial\n Unaudited Reconciliations of GAAP and Non-GAAP Results\n\n Three Months Ended June 30, Six Months Ended June 30,\n (In thousands, except for share and per share data) 2025 2026 2026 2025 2026 2026\n RMB RMB USD RMB RMB USD\n GAAP net income 528,016 46,983 6,924 986,143 84,929 12,517\n Less: (Loss) income from financial investments (net of tax of nil) (15,378) 6,921 1,020 (19,056) 5,043 743\n Less: Impairment losses on financial investments (net of tax of nil) - (1,539) (227) - (8,254) (1,216)\n Less: Impairment losses on long-term investments (net of tax) - (114,925) (16,938) - (114,925) (16,938)\n Less: Loss from financial investments at equity method (net of tax of nil) (37,003) (6,461) (952) (16,126) (38,261) (5,639)\n Add: Share-based compensation expenses (net of tax of nil) 12,818 2,850 420 38,656 5,690 839\n Non-GAAP adjusted net income 593,215 165,837 24,441 1,059,981 247,016 36,406\n\n Non-GAAP adjusted net income per share—basic 2.36 0.74 0.11 4.21 1.08 0.16\n Non-GAAP adjusted net income per share—diluted 2.25 0.73 0.11 4.03 1.06 0.16\n\n Non-GAAP adjusted net income per ADS—basic 14.16 4.44 0.65 25.26 6.48 0.96\n Non-GAAP adjusted net income per ADS—diluted 13.50 4.38 0.65 24.18 6.36 0.94\n\n Weighted average number of ordinary shares outstanding—basic 251,566,501 225,263,539 225,263,539 251,927,644 229,678,786 229,678,786\n Weighted average number of ordinary shares outstanding—diluted 263,948,357 227,553,000 227,553,000 263,019,346 231,984,748 231,984,748\n\n \n\nView original\ncontent:https://www.prnewswire.com/news-releases/x-financial-reports-second-quarter-2026-unaudited-financial-results-302857650.html\n(https://www.prnewswire.com/news-releases/x-financial-reports-second-quarter-2026-unaudited-financial-results-302857650.html)\n\nSOURCE X Financial\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-08-24T09:50:00.141613791Z","server_sent_at_ms":1787565000141},"received_at":"2026-08-24T09:50:00.294Z","source_url":"https://www.prnewswire.com/news-releases/x-financial-reports-second-quarter-2026-unaudited-financial-results-302857650.html"},"analysis":{"id":"114580","press_release_id":"125633","analysis_json":{"industry":{"label":"Consumer Finance","sector":"Financials"},"redFlags":["Total net revenue decreased 56.3% year-over-year","Net income decreased 91.1% year-over-year","Total loan amount facilitated down 70.2% year-over-year","Active borrowers down 74.8% year-over-year","Delinquency rates (91-180 days) remain elevated at 9.09% vs 2.91% prior year","Regulatory environment may materially and adversely affect operating results"],"eventType":"earnings","narrative":"X Financial reported Q2 2026 revenue of RMB993.6 million, down 56.3% year-over-year, with net income falling 91.1% to RMB47.0 million.\n\nOperational metrics showed severe contraction, as total loan facilitation dropped 70.2% YoY to RMB11.63 billion and active borrowers declined 74.8% to approximately 720,258.\n\nDespite the downturn, the board declared a semi-annual dividend of $0.28 per ADS and repurchased roughly $12.5 million of stock year-to-date under a $100 million authorization.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"Revenue and loan volumes collapse by over 50% YoY; company relies on buybacks and dividends to offset bleak operational outlook."},"keyFigures":{"eps":1.26,"revenue":"RMB993.6 million","revenueYoy":"-56.3%","customDimensions":{"net_income":"RMB47.0 million","active_borrowers":"720,258","delinquency_31_60_days":"1.73%","delinquency_91_180_days":"9.09%","total_loans_facilitated":"RMB11.63 billion"}},"quotedText":"We therefore continue to prioritize disciplined underwriting, collection effectiveness, and conservative capital deployment.","namedEntities":{"people":[{"name":"Kent Li","role":"President"},{"name":"Frank Fuya Zheng","role":"Chief Financial Officer"},{"name":"Noah Kauffman","role":"Chief Financial Strategy Officer"}],"products":[],"companies":[{"name":"X Financial","ticker":"XYF"},{"name":"Bank of New York Mellon","relationship":"depositary"}],"dollarAmounts":[{"amount":"RMB993.6 million","context":"Q2 2026 total net revenue"},{"amount":"US$146.4 million","context":"Q2 2026 total net revenue USD equivalent"},{"amount":"RMB47.0 million","context":"Q2 2026 net income"},{"amount":"US$6.9 million","context":"Q2 2026 net income USD equivalent"},{"amount":"US$12.49 million","context":"YTD share repurchases"},{"amount":"US$35.50 million","context":"remaining share repurchase authorization"},{"amount":"US$100 million","context":"total share repurchase program"},{"amount":"US$0.28 per ADS","context":"semi-annual dividend"},{"amount":"US$0.0467 per ordinary share","context":"semi-annual dividend"}]},"materialImpact":{"score":3,"reasoning":"Revenue and net income collapsed more than 50% and 90% year-over-year respectively, driven by a 70% drop in loan facilitation volume. While sequential improvements exist and capital returns continue, the severe contraction and regulatory warnings signal significant distress."},"tickerRelevance":{"others":[],"primary":"XYF"},"globalImportance":25,"audienceRelevance":25,"eventTypeSecondary":["dividend","buyback"],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"earnings-miss","sectorWeight":"financials"}},"event_type":"earnings","event_type_secondary":["dividend","buyback"],"sentiment":"bearish","material_impact_score":3,"narrative":"X Financial reported Q2 2026 revenue of RMB993.6 million, down 56.3% year-over-year, with net income falling 91.1% to RMB47.0 million.\n\nOperational metrics showed severe contraction, as total loan facilitation dropped 70.2% YoY to RMB11.63 billion and active borrowers declined 74.8% to approximately 720,258.\n\nDespite the downturn, the board declared a semi-annual dividend of $0.28 per ADS and repurchased roughly $12.5 million of stock year-to-date under a $100 million authorization.","key_figures":{"eps":1.26,"revenue":"RMB993.6 million","revenueYoy":"-56.3%","customDimensions":{"net_income":"RMB47.0 million","active_borrowers":"720,258","delinquency_31_60_days":"1.73%","delinquency_91_180_days":"9.09%","total_loans_facilitated":"RMB11.63 billion"}},"named_entities":{"people":[{"name":"Kent Li","role":"President"},{"name":"Frank Fuya Zheng","role":"Chief Financial Officer"},{"name":"Noah Kauffman","role":"Chief Financial Strategy Officer"}],"products":[],"companies":[{"name":"X Financial","ticker":"XYF"},{"name":"Bank of New York Mellon","relationship":"depositary"}],"dollarAmounts":[{"amount":"RMB993.6 million","context":"Q2 2026 total net revenue"},{"amount":"US$146.4 million","context":"Q2 2026 total net revenue USD equivalent"},{"amount":"RMB47.0 million","context":"Q2 2026 net income"},{"amount":"US$6.9 million","context":"Q2 2026 net income USD equivalent"},{"amount":"US$12.49 million","context":"YTD share repurchases"},{"amount":"US$35.50 million","context":"remaining share repurchase authorization"},{"amount":"US$100 million","context":"total share repurchase program"},{"amount":"US$0.28 per ADS","context":"semi-annual dividend"},{"amount":"US$0.0467 per ordinary share","context":"semi-annual dividend"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-24T09:52:58.006Z","global_importance":25,"audience_relevance":25,"importance_components":{"tickerTier":"small-cap","eventGravity":"earnings-miss","sectorWeight":"financials"}},"durationMs":177696,"modelName":"glm-4.7"}}