China's X Financial Q1 revenue falls on lower loan volumes

X Financial

27/05/2026 22:06

Overview
China fintech platform's Q1 revenue fell 39% yr/yr on lower loan facilitation volumes
Net income for Q1 dropped 92% yr/yr due to higher credit provisions and reduced origination
Company repurchased 1.8 mln ADSs for $8.2 mln under its share buyback program

Outlook
X Financial expects Q2 2026 loan origination between RMB11.5 bln and RMB12.5 bln
Company says regulatory changes may adversely affect margins and profitability
X Financial will continue prudent risk control and disciplined execution amid evolving conditions

Result Drivers
LOWER ORIGINATION VOLUMES - Revenue and net income fell as loan facilitation and origination volumes declined sharply due to tighter credit standards and focus on higher-quality borrowers
HIGHER CREDIT PROVISIONS - Profitability was significantly impacted by substantially higher credit-related provisions
FEWER ACTIVE BORROWERS - Active borrowers declined 60.6% yr/yr as borrower activity moderated under stricter origination standards

Company press release: ID:nPn3S5rz1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
RMB 1.18 bln
 
Q1 EPS
 
RMB 0.96
 
Q1 Adjusted Net Income
 
RMB 81.18 mln
 

Analyst Coverage
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)