# New Micro-lending Regulations Impact Emerges! XinYe and QiFu Technology's Net Profit Declined by Around 40% in Q4 Last Year, Accelerating Overseas Expansion

Interface News Reporter | He Liuying

Interface News Editor | Wang Shu

The impact of new lending regulations is becoming evident.

Recently, two leading lending support companies, Qifu Technology and Xin Ye Technology, released their Q4 2025 and full-year performance reports. Data shows that in Q4 last year, both companies experienced declines in revenue and net profit, with market interest rate reductions becoming a significant factor affecting operations.

Looking at the full year, Xin Ye Technology achieved growth in both revenue and net profit in 2025, while Qifu Technology saw increased revenue but declining profits. By the end of 2025, the outstanding loan balances for both companies had contracted to varying degrees, and delinquency rates worsened.

It is worth noting that, facing policy and market adjustment pressures, international markets and technology exports have become important growth drivers for some institutions.

Q4 2025 Revenue and Profit Decline

Data shows that in Q4 last year, Qifu Technology’s revenue was 4.093 billion yuan, down 8.68% year-over-year; net profit was 1.016 billion yuan, down 46.89%. Xin Ye Technology’s revenue was 3.024 billion yuan, down 12.53% YoY; net profit was 416 million yuan, down 38.91%.

(Q4 revenue data Source: Company financial reports; Data compilation: He Liuying)

In Q4 2025, among Qifu Technology’s two main business segments, net income from credit-driven services increased to 3.432 billion yuan from 2.89 billion yuan in the same period of 2024 and 3.869 billion yuan in the previous quarter. However, platform service net income sharply declined to 661 million yuan from 1.593 billion yuan in the same period last year and 1.337 billion yuan in the previous quarter.

Wu Haisheng, CEO of Qifu Technology, stated that in Q4 2025, macroeconomic uncertainty and regulatory policy changes led to tighter liquidity across the industry, increased risk levels, and severe operational challenges. Given the intertwined effects of regulatory changes and macroeconomic challenges, the industry has yet to stabilize, and Qifu will continue to adopt a cautious business approach.

Similarly, Xin Ye Technology faced pressure in Q4 last year, with revenue declines mainly due to reductions in loan facilitation service fees, follow-up service fees, and guarantee income, partially offset by increases in net interest income and other income.

Both companies mentioned the operational pressure caused by declining market interest rates, reflecting the impact of new lending regulations on the industry. On October 1, 2025, the China Banking and Insurance Regulatory Commission issued the “Notice on Strengthening the Management of Commercial Bank Internet Lending Business to Improve Financial Service Quality,” which took effect. Under the new regulations, the previously used maximum interest rate cap of 36% was lowered to 24%.

However, analysts suggest that the new lending regulations are not the sole reason for the decline in performance.

Wang Pengbo, senior analyst at Broadcom Consulting for the financial industry, told Interface News that slow recovery in consumer spending and credit demand directly affects business scale and pricing levels, while persistent declines in market interest rates compress profitability. “Additionally, intensified industry competition raises customer acquisition costs and lowers conversion rates. Coupled with new regulatory requirements such as whitelist management, explicit disclosure of comprehensive financing costs, and risk control responsibilities, institutions need to adjust their business structures, cooperation models, and fee systems. During this transition, revenue streams are constrained, costs increase, asset quality indicators rise, and risk management costs grow, further dragging down profit performance.”

Loan Balances Contracting and Delinquency Rates Rising

Looking at the full year, Xin Ye Technology achieved double growth. In 2025, revenue was 13.569 billion yuan, up 3.85% YoY; net profit was 2.545 billion yuan, up 6.57%. Qifu Technology saw increased revenue but decreased profit, with revenue reaching 19.205 billion yuan, up 11.88%, and net profit declining 4.35% to 5.976 billion yuan.

(Annual revenue data Source: Company financial reports; Data compilation: He Liuying)

In terms of revenue contribution, both companies’ heavy capital income contributed to performance growth.

Xin Ye Technology’s full-year revenue growth was mainly driven by increases in loan facilitation service fees, net interest income, and other income. Notably, net interest income surged to 1.3365 billion yuan from 853.8 million yuan in 2024, primarily due to increased average outstanding balances of on-balance-sheet loans in China and international markets.

Qifu Technology’s revenue composition in 2025 showed that net income from credit-driven services increased to 13.977 billion yuan from 11.719 billion yuan in 2024, mainly due to increased loan facilitation and service fees driven by larger loan matching scale and higher average on-balance-sheet loan balances. Platform service net income declined slightly to 5.228 billion yuan from 5.447 billion yuan, mainly due to reduced loan matching scale under a light-capital model.

The company’s increased revenue but decreased profit in 2025 was due to a significant rise in operating costs and expenses, from 9.637 billion yuan in 2024 to 12.527 billion yuan in 2025, including increased provisions for loans receivable from 2.773 billion yuan to 3.625 billion yuan, mainly due to increased on-balance-sheet loan origination scale.

Operational metrics as of the end of 2025 show that Qifu Technology’s outstanding loan balance was 126.01 billion yuan, down 8.8% from the previous quarter and 8% year-over-year. Over the full year, the company facilitated loans totaling 327.07 billion yuan, up 1.6% YoY.

In 2025, Xin Ye Technology facilitated transactions worth 200.3 billion yuan, a slight decrease from 206.2 billion yuan in 2024. As of the end of 2025, the outstanding loan balance was 70.9 billion yuan, down from 71.5 billion yuan at the end of 2024. Notably, the on-balance-sheet loan balance in Mainland China was 68.3 billion yuan, down 2.1% YoY, while international market loans surged 52.9% to 2.6 billion yuan.

In terms of asset quality, as of the end of 2025, Xin Ye Technology’s overdue loan ratio (Mainland China market) for loans overdue over 90 days was 2.85%, up from 2.13% at the end of 2024. Qifu Technology’s overdue ratio was 2.71%, up from 2.09%.

Zheng Yan, Chief Risk Officer of Qifu Technology, stated that external factors led to an increase in asset risk levels in Q4 2025. The company has tightened risk controls, and recent new loans have shown marginal improvement in risk.

Looking ahead to 2026, both companies expect continued pressure.

Qifu Technology indicated that due to ongoing macroeconomic uncertainty and regulatory pressures, risk control remains the top priority, and they will adopt a cautious approach in their business planning for the coming quarters. In Q1 2026, the company expects a net profit of 830 million to 880 million yuan and non-GAAP net profit of 900 million to 950 million yuan, representing a 51% to 53% YoY decline.

Xin Ye Technology expects that recent regulatory policy changes will bring short-term uncertainty, with total revenue for 2026 projected between 11.5 billion and 12.9 billion yuan, a decrease of approximately 5% to 15% YoY.

Wang Pengbo told Interface News that the outlook of these two companies indicates that domestic credit demand recovery pace, market competition, and regulatory compliance costs will continue to influence operational performance, and the industry remains in a phase of adjustment and pressure.

International Markets Become Key Growth Drivers

It is worth noting that international markets have become an important growth curve for some lending support institutions.

In Q4 2025, Xin Ye Technology’s international business revenue reached 951 million yuan, up 28.6% YoY, accounting for 31.4% of total quarterly revenue. Xin Ye Technology stated that its international business maintained strong growth momentum, becoming a key engine for overall performance.

For the full year, Xin Ye Technology’s international revenue reached 3.3 billion yuan, up 32.0% YoY, accounting for 24.6% of total revenue. The total international transaction volume in 2025 was 14 billion yuan, up 38.6%. By the end of 2025, the total registered users in international markets exceeded 52.1 million, a 45.9% increase, and the total borrowers reached 11.7 million, a 67.1% increase.

In 2025, Xin Ye Technology doubled its user base in Indonesia and the Philippines, reaching 5.9 million users. The company entered these markets early, with its Indonesian brand AdaKami obtaining a financial license from the Indonesian Financial Services Authority (OJK) in December 2019, and its Philippine brand JuanHand receiving an online lending license from the Securities and Exchange Commission.

In Q4 2025, Xin Ye Technology officially announced its entry into the Australian market, marking a significant step in its strategic expansion into developed markets and further deepening its globalization strategy.

Qifu Technology also invests resources in overseas markets. Wu Haisheng stated, “While making necessary adjustments to domestic operations, we continue to expand overseas. In Q4, we increased overseas resource investment, obtained necessary local licenses, and established local teams, extending our business footprint to several developing countries. Long-term, we believe these overseas markets will not only offer substantial growth opportunities but also help diversify our geographic business structure.”

After releasing its Q2 2025 financial results, the company announced that its UK operations had been launched. Qifu Technology stated that in 2026, it plans to explore and experiment actively in multiple overseas markets to accelerate its international expansion.

Industry insiders have told Interface News that Indonesia, Mexico, and other countries are popular destinations for outbound credit businesses. These countries have large populations, high credit demand, and relatively low entry barriers, attracting many Chinese enterprises.

“Some regions abroad have low credit penetration and rapidly growing digital financial needs, providing incremental markets and new growth opportunities for institutions. Leading companies can export mature risk control technologies, credit models, and operational capabilities, creating competitive advantages. International expansion also helps spread risks associated with a single market,” Wang Pengbo explained.

“Challenges include significant differences in financial regulation systems, licensing, credit reporting environments, and user habits across countries and regions. Compliance and local operations costs are high, risk control models need to be re-adapted to local credit data and default characteristics, and competition from local financial institutions, international payment, and credit platforms poses additional challenges. Cross-border capital management, talent recruitment, and policy changes all impact business stability,” Wang added.

Additionally, technology exports have also brought incremental growth for some institutions.

According to Qifu Technology, their FocusPro solution, which supports bank self-risk management and helps banks build core capabilities, contributed to a 448% year-over-year increase in loan disbursements by partner banks in 2025, with the year-end balance reaching 11.8 billion yuan.