Aug 27, 2026 earnings call — China funding tightens; overseas growth offsets
Group revenue rose 6% sequentially to RMB 3.4 billion while overseas operating profit was RMB 54 million, up 17% sequentially.
Revenue $0.5B (est $0.5B) · EPS $0.29
Key quotes
"In July, an isolated credit event led institutional funding partner to reduce funding for loan facilitation."
"Our unique borrowers more than doubled from a year ago to 5.3 million."
"In the second quarter, we repurchased USD 27.4 million of shares, bringing first half 2026 repurchase to USD 66.8 million."
Analyst Q&A 3
funding, risk control, Philippines impact
Q (Yun-Yin Wang · China Renaissance): They asked what business changes were made after the Juzi incident to control risk, the current funding supply, whether small platforms exiting raises industry risk, and recent early risk indicator changes. They also asked how the Philippines interest rate cap affects overseas new loan growth this year.
A: Management said the Juzi event tightened funding as institutions paused and pulled back, and their China volume fell around 50% in July. They increased transparency with partners, raised underwriting standards, prioritized high-quality customers, and cited cash and liquid assets totaling RMB 12.5 billion as a resilience buffer. They noted early risk indicators rose about 20% versus Q2, expect near-term volatility for 1 to 2 quarters, and said the Philippines slowdown from the April 1 rate cap should recover by Q3 while overseas volume should grow double-digit for the year.
"In the second quarter, we had RMB 6.4 billion in cash and short-term investments." — Jiayuan Xu (CFO)
funding cost and buyback
Q (Xiaoxiong Ye · UBS): They asked how funding costs have changed recently versus Q2 and the outlook for 1–2 quarters. They also asked whether the company will change how it uses its own capital and how buyback pace should be thought about.
A: Management said funding costs ticked up in Q3 versus Q2, rising about 30 basis points in July, and they expect the gradual upward trend to continue over the next quarter or two. They said they are leaning on their strong balance sheet and ample cash, offering credit enhancement to partners and exploring capital injections into licensed businesses to diversify funding. On buybacks, they will prioritize steady business operations and keep flexibility to execute buybacks based on share price, market and liquidity, while maintaining long-term shareholder return commitments.
"We are seeing funding costs tick up in the third quarter relatively to the second quarter, up about -- around 30 basis points in July." — Jiayuan Xu (CFO)
drivers of overseas profit growth
Q (CICC): They asked what will drive Overseas profit growth in the second half of the year.
A: Management said the overseas build is now a mature second profit engine supported by three major markets. Indonesia contributes the bulk of incremental growth and should benefit from a seasonal peak and higher-quality, longer-tenor products; the Philippines should recover sequentially after tightening for the rate cap and mix cleanup; Australia is expanding fast with unit borrowers up 22% quarter-over-quarter and volume up 70% sequentially, and should keep double-digit sequential growth. Together, broader product diversification and customer mix upgrades across these markets will drive overseas profit growth.
"Indonesia contributed the bulk of the incremental growth and the Philippines gradually recover and the Australia continue its rapid expansion." — Jiayuan Xu (CFO)