On August 24, X Financial (NYSE: XYF), a leading fintech company in China, released its unaudited financial results for the second quarter ended June 30, 2026. Despite facing a complex and volatile external operating environment, the company maintained its commitment to regulatory compliance, using AI to upgrade its entire operational chain. While preserving balance sheet resilience and operational flexibility, it achieved continuous improvements in user service experience and steady gains in operational efficiency, unlocking long-term development value.
According to the financial data, the total loan volume facilitated and provided during the second quarter of 2026 reached RMB 11.63 billion. The company also reported total net revenues of RMB 993.6 million for the same period. Mr. Li Kan, President of X Financial, commented, "In the second quarter of 2026, we continued to prioritize prudent credit assessment and conservative capital allocation. Even though the business faced pressures from declining loan origination volumes and a stringent credit environment, our focus remains on maintaining balance sheet resilience and operational flexibility."
Anchored in a compliance-first strategy, the company reinforced its operational resilience through customer value. During the quarter, in light of new trends in the macroeconomic and industry landscape, X Financial treated regulatory compliance as a fundamental prerequisite for business development. It proactively embraced oversight, adjusted its operational pace, optimized access standards, and refined customer profiles to precisely target segments such as individual businesses and small-to-medium enterprise owners. This approach solidified its operational resilience and reinforced the long-term foundation for sustainable growth.
X Financial strengthened financial consumer rights awareness by adhering to a principle of "equal emphasis on education and prevention." Focusing on protecting consumers' rights to information and independent choice, it integrated user awareness initiatives throughout the entire chain, from product design to marketing. Simultaneously, the company targeted key service groups, including new urban residents and small business owners, delivering tiered and categorized financial literacy and risk alerts through intelligent service and official channel matrices. These efforts guide users in enhancing their ability to identify risks and self-protect, effectively translating a "user-centric" philosophy into tangible service experiences.
Mr. Zheng Fuya, Chief Financial Officer of X Financial, stated, "In the second quarter of 2026, total net revenues were RMB 993.6 million, with net income of RMB 47 million. As we navigate the evolving regulatory and operating landscape, we will continue to pursue prudent capital management, strict cost control, and maintain ample liquidity."
X Financial continued to advance its AI applications in targeted vertical scenarios, boosting efficiency across its service chain. Aligning with industry trends toward compliant quality improvement and refined management, the company deepened its use of AI technology integration this quarter, increasing R&D investment to drive the adoption of artificial intelligence throughout its operations. Currently, AI-driven digital capabilities cover core areas such as user service and risk prevention, effectively enhancing operational efficiency, service quality, and risk control performance in tandem.
In user operations and post-loan servicing, the company leveraged its independently developed virtual digital human, "Win-Daidai," to establish an efficient "AI-plus-human" service system. This system handles routine tasks like 24/7 online consultations and business guidance, while human agents focus on resolving complex disputes and personalized needs. In other scenarios, "Win-Daidai" conducts financial knowledge promotion using standardized service protocols, improving both outreach precision and user experience while ensuring accurate, compliant service records.
The WinPROT protection system continued to be optimized and upgraded, using AI algorithms to enable comprehensive intelligent interception and real-time alerts against potential fraudulent activities. This enhances the full-cycle risk prevention framework across pre-loan, during-loan, and post-loan stages. The company actively benchmarked against high industry compliance standards and strengthened key links, ensuring compliance across its entire chain via a dual approach of technology and institutional safeguards.
As of June 30, 2026, the company's historical cumulative number of active borrowing users reached 20.46 million. Looking ahead, X Financial will remain steadfast in upholding compliance as a bottom line, leveraging technology to improve quality and efficiency, seeking innovation from stability, and pursuing growth within regulated frameworks. The company plans to continue deepening financial services for key groups such as small businesses and new urban residents, shoring up asset quality, and maintaining balance sheet resilience and operational flexibility to contribute sustained fintech strength toward high-quality development of the real economy and the protection of users' well-being.