X Financial Sponsored ADR Class A (XYF.US) Q2 2026 Financial Report: Driving Artificial Intelligence Empowerment to Enhance Quality and Build Operational Resilience for Development

On August 24, X Financial Sponsored ADR Class A (XYF.US), a leading financial technology company in China, released its unaudited financial results for the second quarter ending June 30, 2026. In the face of a complex and changing external operating environment, the company remained committed to compliant operations, leveraging AI for full-chain upgrades. While maintaining the resilience of its balance sheet and operational flexibility, it continually optimized user service experiences and achieved steady improvements in operational quality and efficiency, opening up value space for long-term development. According to the financial report, the total amount of loans facilitated and provided in the second quarter of 2026 was 11.63 billion yuan; the total net income for the second quarter of 2026 was 993.6 million yuan. Mr. Li Kan, President of X Financial Sponsored ADR Class A, stated, In the second quarter of 2026, we continued to prioritize prudent credit reviews and conservative capital allocations. Although the business still faced pressures from a decline in loan disbursements and a tough credit environment, our focus remains on maintaining the resilience of our balance sheet and operational flexibility. Anchoring Compliance and Stability, Solidifying Operational Resilience with Service Value In the second quarter of 2026, as the macroeconomic landscape and industry environment exhibited new development trends, X Financial Sponsored ADR Class A consistently regarded compliant operations as the fundamental premise for business development. The company actively embraced regulation, adjusted operational rhythms, optimized access standards, and refined customer segmentation to precisely reach individual business owners, micro-enterprise leaders, and other target groups, thereby continually solidifying operational resilience and further reinforcing the core foundation for long-term business development. X Financial Sponsored ADR Class A has continuously strengthened financial consumer rights awareness, upholding the principle of "education and advocacy emphasized, prevention first" in consumer protection work. The core focus is to ensure consumers' right to information and independent choice, integrating user awareness enhancement throughout product design, marketing, and all operational chains. At the same time, X Financial Sponsored ADR Class A focuses on key service groups such as the new urban residents and micro-enterprise owners to conduct tiered and categorized financial knowledge dissemination and risk alerts through an intelligent service matrix and official channel matrix. This guides users to enhance their risk recognition and self-protection abilities, effectively translating the "user-centered" concept into a tangible service experience. Mr. Zheng Fuya, Chief Financial Officer of X Financial Sponsored ADR Class A, stated, In the second quarter of 2026, total net income reached 993.6 million yuan, with a net profit of 47 million yuan. While responding to the continuously evolving regulatory and operating environments, we will continue to maintain prudent capital management, adhere to cost control, and ensure ample liquidity. Continuing to Lay Out AI Vertical Scenarios, Enhancing Full-Chain Service Efficiency Aligned with the trend of compliance improvement and refined control development in the financial industry, X Financial Sponsored ADR Class A continued to focus on integrating AI technology in this quarter, increasing R&D investments, and advancing the deep application of artificial intelligence across the entire service chain. Currently, AI-centered intelligent capabilities have deeply penetrated core areas such as user service and risk control, effectively driving the synergistic enhancement of operational efficiency, service quality, and risk control levels. In user operations and post-loan services, a self-developed virtual DIGIHUMAN Win-Daidai service capability is at the core, creating an efficient collaborative service system of "AI + human." It supports standardized services such as 24/7 online consultation and business processing guidance, with human customer service focusing on complex dispute mediation and personalized demand responses. In other scenarios, Win-Daidai conducts financial knowledge dissemination with unified service standards, improving both accuracy in reach and user experience, while providing a fully compliant and traceable service record. The WinPROT protection system continues to optimize and upgrade, utilizing AI algorithms to achieve intelligent interception and real-time alerts for potential fraudulent behavior, thereby improving the risk control system across the full loan cycle, including pre-loan, loan, and post-loan phases. The company actively benchmarks itself against high compliance standards in the industry, continuously enhancing key aspects and leveraging both technology and regulatory frameworks to ensure compliance throughout all business chains. As of June 30, 2026, the company had a cumulative total of 20.46 million historically active borrowing users. Looking to the future, X Financial Sponsored ADR Class A will remain steadfast in its commitment to compliant operations, leveraging technology to improve quality and efficiency, innovating within a robust framework, and seeking development within a regulated context. The company will continue to deepen its financial services for key groups such as micro-enterprises and new urban residents, constantly reinforcing the foundation of asset quality, ensuring balance sheet resilience and operational flexibility to continuously contribute to the high-quality development of the real economy and to safeguard users' better lives through financial technology.