CNFinance Holdings Limited (CNF) Q2 2025 Earnings Conference Call Transcript
Sales Partners As of June 30, 2025, the company signed a total of 2,184 sales partners, marking a year-on-year increase of 2%. Additionally, 1,485 sales partners introduced borrowers, representing a 3.3% growth.
Loan Transactions and Origination The number of loan transactions decreased by 78.1% year-on-year, and the total loan origination dropped by 85.4%. This was due to proactive efforts to control loan issuance and focus on reducing nonperforming loans.
Loan Balance By the end of Q2 2025, the loan balance stood at RMB 11.2 billion, a decrease of 29.6% compared to last year. This was part of a strategy to leverage existing assets and optimize new ones, focusing on risk mitigation and asset quality enhancement.
Interest Income Interest income was RMB 416 million in the first half of 2025, a decline of 55% year-on-year. This was influenced by the company's strategic adjustments and reduced loan issuance.
Financing Costs and Operating Expenses Financing costs decreased by 32%, and operating expenses fell by 74%, reflecting strong cost control capabilities.
Net Loss The company reported a net loss of RMB 40.4 million, primarily due to an impairment loss provision of RMB 31.3 million.
Nonperforming Loan (NPL) Ratio As of June 30, 2025, the NPL ratio was 16.9%. Although the ratio rose, the increase of new NPLs was effectively contained. The company achieved a 103% NPL recovery rate through diversified reduction measures.
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CNFinance Approves Dual-Class Share Structure at Extraordinary Shareholder Meeting
- Equity Structure Adjustment: CNFinance held an extraordinary shareholder meeting in Guangzhou, approving an increase in authorized share capital from $380,000 to $2 million, creating 14.2 billion Class A shares and 2 billion Class B shares, aimed at enhancing corporate governance and attracting investors.
- Corporate Charter Update: The meeting adopted a new third amended and restated memorandum and articles of association, replacing the existing ones to ensure alignment with future strategic goals, thereby improving transparency and compliance.
- Director Authorization: Shareholders authorized company directors to take necessary actions to implement the resolutions, ensuring flexibility and efficiency in decision-making to drive the achievement of corporate strategic objectives.
- Market Positioning Enhancement: By implementing a dual-class share structure, CNFinance aims to strengthen its appeal to micro and small enterprise owners, further solidifying its leadership position in China's home equity loan market.

CNFinance Schedules Extraordinary General Meeting for December 10, 2025
Extraordinary General Meeting Announcement: CNFinance Holdings Limited will hold an Extraordinary General Meeting (EGM) on December 10, 2025, to consider adopting a dual-class shareholding structure and amending its memorandum and articles of association.
Record Date for Shareholders: The record date for shareholders entitled to attend the EGM is set for November 10, 2025, and both ordinary shareholders and American depositary share (ADS) holders must follow specific procedures to exercise their voting rights.






