Aug 31, 2026 earnings call — Industry funding squeeze and business transformation
Industry funding squeeze hit loan facilitation; Q2 revenue RMB 3.19 billion, loan volume RMB 55.43 billion and net profit RMB 101 million.
Revenue $0.5B (est $0.5B) · EPS $0.09
Key quotes
"Most notably, in late June, risk events involving certain peers triggered a widespread tightening and even suspension of funding supply across the industry, severely impacting the industry landscape and shaking market confidence."
"In the second quarter, our fintech empowerment business delivered solid growth and achieved profitability."
"Over 100 AI agent roles are currently deployed across key operational scenarios, such as intelligent strategy generation, compliance check, post-loan management and smart customer services, all contributing to our cost reduction targets."
Analyst Q&A 3
industry funding shock and our actions
Q (Judy Zhang · Citi): Analyst asked how recent industry risk events affected the industry and the company, what steps management is taking, and how the risk trend will evolve in Q3.
A: Management said recent peer events caused a crisis of confidence and broad tightening and even suspension of funding across the industry. They said their loan facilitation business took a meaningful hit in July, new loan originations contracted, and asset quality is more volatile. They said they have ample capital, remain on the whitelist of major funding partners, are cutting management costs by 30% to 40%, and are accelerating a shift to a tech-empowered model while keeping e-commerce profit growth.
"The recent risk events involving certain peers have triggered a crisis of confidence among funding providers, causing a broad-based tightening and even suspension of funding supply across the industry." — Jay Xiao (CEO·CHAIR)
second-half outlook and Q3 loss
Q (Huanan Zhou · UBS): Analyst asked how to think about financial performance in the second half given the recent industry risk events.
A: Management said market visibility is limited and they are not giving specific financial guidance now. They expect Q3 to be under pressure because loan originations fell in July and August, credit costs will rise due to higher default risks, and a one-off severance-related cost will temporarily raise G&A. They said the company is expected to record a net loss in the third quarter and will update Q4 guidance once there is more clarity.
"So if I factor in all of this, we expect the company to record a net loss in the third quarter." — Xigui Zheng (CFO)
dividend change and shareholder returns
Q (Yujie Jing · CICC): Analyst asked about the change to the dividend policy and the company’s long-term plans to return value to shareholders.
A: The Board said it changed dividends from semiannual to annual to keep ample liquidity, financial flexibility, and capital for the company’s transformation. They said this approach is meant to protect long-term shareholder interest. They reaffirmed commitment to returning value and said the Board will evaluate shareholder return options, including share buybacks, as the industry recovers.
"I would like to stress that our commitment to creating and returning value to shareholders has not wavered." — Unknown Executive