CNFinance Holdings Limited

For the first half of 2025, interest income was RMB 416 million, down 55% year over year. Financing costs decreased 32% and operating expenses fell 74%, while net loss was RMB 40.4 million, primarily driven by an RMB 31.3 million impairment loss provision. As of June 30, 2025, the loan balance was RMB 11.2 billion, down 29.6% year over year, and the NPL ratio was 16.9%. Loan transactions declined 78.1% year over year and total loan origination fell 85.4%. Management did not give numeric next-quarter or full-year guidance, but said it will continue prioritizing NPL reduction, stable funding channels, and new business development.

Jun Qian framed the first half around a “survival first, victory first” approach, saying the company deliberately slowed lending to protect asset quality and work down nonperforming loans. He acknowledged that this strategy pressures short-term performance, but argued it creates a foundation for steadier long-term growth. He also highlighted three priorities: reducing NPLs, stabilizing funding, and expanding into new business areas with refined and newly launched products.

The financial commentary emphasized cost discipline and balance-sheet cleanup. Management said financing costs were down 32% and operating expenses were down 74%, reflecting organizational streamlining and personnel reductions, while the first-half net loss was RMB 40.4 million, mainly from an RMB 31.3 million impairment provision. On credit quality and funding, it said the NPL ratio reached 16.9% but new NPL inflow was contained, the company achieved a 103% NPL recovery rate, and it brought in new institutional investors, mainly local AMCs, to keep financing channels stable.

There were no analyst questions on the call. As a result, the discussion remained management-led and focused on explaining the sharp decline in loan volumes, the rise in the NPL ratio, and the steps being taken to stabilize funding and improve asset quality. Management did not provide additional numeric guidance beyond its stated priorities.