X Financial (XYF) SEC Filings & Earnings Calls

Credit quality deterioration: 91-180 day delinquency rate rose to 9.09% from 2.91% YoY

“Delinquency rate for loans past due 91-180 days was 9.09% as of June 30, 2026, compared with 2.91% as of Q2 2025”

Transition in key risk management role; however, successor has prior experience as CRO and remains President, mitigating disruption.

“Mr. Kan Li has served as President and Director and previously as Chief Risk Officer from November 2017 to November 2023.”

Sharp decline in loan origination and rising delinquency rates indicate deteriorating credit quality and operating environment.

“Total loan amount facilitated down 58.4% YoY; 31-60 day delinquency rate 2.61% vs 1.25% YoY; 91-180 day delinquency rate 9.95% vs 2.73% YoY”

Net income down 91.7% YoY; operating margin compressed from 29.6% to 12.0%.

“Net income decreased 91.7% YoY; operating margin decreased to 12.0% from 29.6%”

Regulatory developments could adversely affect margins and profitability.

“The Company remains attentive to recent regulatory developments and evolving credit conditions, and acknowledges that potential regulatory changes, once implemented, could adversely affect margins and profitability.” · word for word

Rising delinquency rates

“The delinquency rate for outstanding loans 31-60 days past due increased from 1.17% as of December 31, 2024 to 2.90% as of December 31, 2025.” · word for word

Regulatory pricing cap pressure

“Notice 9 requires commercial banks to strictly control total borrowing costs... in practice a 24% annual cap on total borrowing costs is generally implemented and enforced.”

Whitelist funding access risk

“Notice 9 requires the head office of each commercial bank to implement a list-based management (Whitelist) system for loan facilitation platform operators... If we fail to maintain our inclusion on the Whitelists... our funding channels may be significantly constrained.”

VIE structure regulatory risk

“If Chinese Mainland authorities deem our VIE structure non-compliant with applicable laws, we could face penalties or be forced to relinquish our interests in those operations.” · word for word

HFCA Act delisting risk

“If the PCAOB determines in the future that it no longer has full access to inspect and investigate accounting firms in mainland China and Hong Kong... our securities would be prohibited from trading on any U.S. national securities exchange or over-the-counter market.”

Sharp increase in delinquency rates indicates deteriorating credit quality and potential for further credit losses.

“Delinquency rate 31-60 days rose to 2.90% from 1.17% YoY; 91-180 days rose to 6.31% from 2.48% YoY”

Revenue and profit decline driven by lower loan volumes and higher provisions, signaling operational headwinds.

“Net revenue down 14.1% YoY; operating income down 96.2% YoY”

Credit quality deterioration: delinquency rates rose significantly, especially 31-60 day bucket (1.85% vs 1.02% YoY), indicating potential asset quality stress.

“Delinquency rate for 31-60 days was 1.85% as of Sep 30, 2025, markedly higher than 1.02% in Q3 2024.”

Operating margin compression: operating margin halved to 18.5% from 32.2% YoY due to higher provisions and expenses.

“Income from operations decreased 28.9% to RMB361.9M; operating margin decreased to 18.5% from 32.2%.”