CNFinance Q2 loan origination volume declines 73% YoY.

• CNFinance Holdings reported Q2 2025 financial results • Loan origination volume and interest income declined • Loan balance decreased from June 2024 levels • Company reduced new loan issuance to focus on portfolio quality • Implemented cost management initiatives to decrease expenses

CNFinance Holdings Limited (NYSE: CNF) announced its unaudited financial results for the first half of 2025, reporting a significant decline in loan origination volume and interest income. The company, a leading provider of home equity loans in China, has strategically reduced new loan issuance to focus on managing the quality of its existing portfolio. This strategic shift has led to a decrease in loan origination volume and interest income, with total interest and fees income decreasing by 55.1% to RMB415.7 million (US$58.0 million) [1].

The company's loan balance as of June 30, 2025, showed a decline from June 2024 levels, reflecting the strategic decision to focus on portfolio quality. This reduction in loan balance was accompanied by a decrease in average daily outstanding loan principal, contributing to a 54.4% drop in interest and financing service fees on loans to RMB380.2 million (US$53.1 million) [1].

CNFinance also reported a decrease in interest income charged to sales partners, which decreased by 60.8% to RMB32.6 million (US$4.5 million). Additionally, interest on deposits with banks decreased by 68.8% to RMB2.9 million (US$0.4 million) [1].

The company's total interest and fees expenses decreased by 32.4% to RMB271.7 million (US$37.9 million), primarily due to a decrease in average daily balance of interest-bearing borrowings. Net interest and fees income was RMB144.0 million (US$20.1 million) for the first half of 2025, compared to RMB524.8 million in the same period of 2024 [1].

CNFinance also reported a decrease in net revenue under the commercial bank partnership model, which was RMB1.9 million (US$0.3 million) for the first half of 2025 compared to RMB58.4 million in the same period of 2024. Collaboration cost for sales partners decreased by 69.3% to RMB48.9 million (US$6.8 million) due to the decrease in new loans facilitated [1].

Despite these declines, CNFinance remains committed to reducing non-performing ratios and exploring new growth opportunities to sustain shareholder value. The company has established partnerships with supply chain finance firms, with current business volume exceeding RMB 100 million since the beginning of 2025 [1].

The company's operating expenses decreased by 50.5% to RMB101.4 million (US$14.2 million) in the first half of 2025, compared to RMB204.7 million in the same period of 2024. Employee compensation and benefits decreased by 39.2% to RMB52.9 million (US$7.4 million), while taxes and surcharges decreased by 43.2% to RMB6.8 million (US$1.0 million) [1].

CNFinance's net loss for the first half of 2025 was RMB40.4 million (US$5.6 million), compared to net income of RMB47.9 million in the same period of 2024. Basic and diluted earnings per ADS were RMB(0.59) (US$(0.08)) and RMB(0.63) (US$(0.09)), respectively, in the first half of 2025, compared to RMB0.70 and RMB0.70 in the same period of 2024 [1].

The delinquency ratio (excluding loans held for sale) for loans originated by the Company increased from 29.7% as of December 31, 2024 to 46.0% as of June 30, 2025. The NPL ratio (excluding loans held for sale) for loans originated by the Company was 16.9% as of June 30, 2025 compared to 8.5% as of December 31, 2024 [1].

CNFinance's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Thursday, August 28, 2025. For more information, see the company's investor relations website at http://ir.cashchina.cn/ [1].

References:
[1] https://www.marketscreener.com/news/cnfinance-announces-first-half-of-2025-unaudited-financial-results-ce7c50dfdf8ef126