PPDAI Group Q2 Earnings Call Highlights

PPDAI Group NYSE: FINV, which operates as FinVolution Group, reported sequential growth in loan volume, revenue and net income for the second quarter of 2026, while cautioning that a tightening funding environment and collection-industry regulatory actions in China could weigh on lending volumes and credit conditions in coming quarters.

Group loan volume rose 5% sequentially to RMB45 billion, Chief Executive Officer Tim Li said on the company’s earnings call. Revenue increased 6% to RMB3.4 billion, while net income rose 1% sequentially to RMB427 million. The company recorded RMB529 million in operating profit, including a RMB64 million one-time impairment of intangible assets. Excluding that charge, operating profit increased 8% sequentially, Chief Financial Officer Alexis Xu said.

FinVolution reiterated its full-year revenue outlook of RMB11.5 billion to RMB12.9 billion. However, Xu said the company now expects results to land in the lower end of that range unless the operating environment changes substantially, citing softer second-half conditions in China.

In mainland China, loan volume reached RMB41 billion, up 6.5% from the prior quarter, as the company continued a recovery that began early in 2026. China revenue rose 8% sequentially to RMB2.4 billion, while the take rate remained about 3.2%. The company said credit performance improved through the second quarter. C-M2 declined to 0.56% from 0.68%, and vintage credit costs remained near 2.7%. The 30-day collection rate improved to 89% from 87%, though day-one delinquency increased slightly to 5.3% from 5.2%. Li said the company selectively expanded its lending book among higher-quality repeat borrowers, resulting in 6% sequential growth in unique borrowers while maintaining stable credit quality. China operating profit rose 4.3% sequentially to RMB625 million, according to Xu.

Conditions shifted in July following what management described as an isolated credit event involving the Jizi platform. Xu said the event prompted many financial institutions to conduct internal reviews of loan-facilitation partners, with some pausing business during those assessments. Smaller and midsize lending platforms either exited the market or sharply reduced originations, he said. FinVolution said its China loan volume was down about 50% in July as industry funding tightened. Management said institutional confidence had begun to stabilize in August, but that the recovery in available funding remained gradual. Funding costs increased 30 basis points sequentially to 3.7% in the second quarter, and Xu said they rose by an additional roughly 30 basis points in July. The company expects funding costs to continue trending upward over the next one to two quarters.