CNFinance Holdings Reports Q2 2025 Results: Decline in Interest Income and Net Loss

CNFinance Holdings reported a 55.1% decrease in total interest and fees income to RMB415.7 million in Q2 2025, and a 54.4% drop in interest and financing service fees on loans. The company also reported a net loss of RMB40.4 million compared to a net income of RMB47.9 million in the same period of 2024. Despite this, CNFinance successfully reduced operating expenses by 50.5% through disciplined cost management. The company is exploring new growth avenues by introducing market-driven products and establishing partnerships with supply chain finance firms.

CNFinance Holdings Ltd (NYSE:CNF) reported its Q2 2025 financial results, reflecting a challenging market environment and strategic shifts towards improving asset quality and operational efficiency. The company reported a 55.1% decrease in total interest and fees income to RMB415.7 million, a 54.4% drop in interest and financing service fees on loans, and a net loss of RMB40.4 million compared to a net income of RMB47.9 million in the same period of 2024 [1].

Despite the financial setbacks, CNFinance successfully reduced operating expenses by 50.5% through disciplined cost management. The company's strategic focus on risk mitigation and asset quality enhancement is evident in its 103% non-performing loan (NPL) recovery rate in the first half of 2025, despite a 16.9% NPL ratio [2].

CNFinance's total loan balance decreased by 29.6% year-over-year (YoY) to RMB11.2 billion, with interest income falling by 55% YoY. The company's strong cost control capabilities are highlighted by a 32% decrease in financing costs and a 74% reduction in operating expenses [2].

Looking ahead, CNFinance is exploring new growth avenues by introducing market-driven products and establishing partnerships with supply chain finance firms. The company's strategic principle of "Survival first, victory first" underscores its approach to navigating market challenges [2].

References:
[1] https://seekingalpha.com/news/4489892-cnfinance-h1-gaap-epads-of-008
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-cnfinance-q2-2025-reveals-strategic-shift-amid-losses-93CH-4214738