CNF

GUANGZHOU, China, Aug. 28, 2026 /PRNewswire/ -- CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company"), a leading home equity loan service provider in China, today announced its unaudited financial results for the first half of 2026 ended June 30, 2026. "During the first half of 2026, we continued to execute our strategy of optimizing our existing portfolio, strengthening asset recovery and improving the quality and efficiency of our business. Against a challenging macroeconomic and industry backdrop, we made meaningful progress in the resolution of existing assets, with cash recoveries from overdue loans reaching approximately RMB600 million and an overall recovery rate of 103%. These results reflect the effectiveness of our asset recovery and disposal capabilities and our continued focus on disciplined portfolio management. At the same time, we continued to streamline our operations and strengthen cost discipline. Operating expenses decreased by approximately 58% year over year, reflecting the progress we have made in organizational optimization and operational efficiency. We also continued to proactively manage our existing loan portfolio. Our financial results for the first half of 2026 reflect the ongoing transition of our business, including the substantial reduction of our outstanding loan portfolio and the recognition of credit-loss provisions associated with our existing portfolio. While this transition has resulted in near-term pressure on our financial performance, we believe that the actions we are taking are important to strengthening the quality of our balance sheet, improving operating efficiency and positioning the Company for more sustainable development. Looking ahead, we will remain focused on accelerating asset recovery, executing selected new business initiatives with disciplined risk management, and continuing to enhance organizational efficiency. We will remain prudent in managing our capital and resources while seeking to build a more resilient and sustainable business and create long-term value for our shareholders," commented Mr. Zhai Bin, Chairman and Chief Executive Officer of CNFinance. First Half of 2026 Financial Results Total interest and fees income was RMB89.5 million (US$13.2 million) for the first half of 2026, compared to RMB415.7 million in the same period of 2025. Interest and financing service fees on loans was RMB87.7 million (US$13.0 million) for the first half of 2026, compared to RMB380.2 million in the same period of 2025, primarily attributable to the decrease of average daily outstanding loan principal as the Company continued to optimize its existing portfolio and exercise discipline over new loan disbursements. Interest income charged to sales partners, representing fee charged to sales partners who choose to repurchase default loans in installments was RMB0.8 million (US$0.1 million) for the first half of 2026, compared to RMB32.6 million in the same period of 2025, primarily attributable to a decrease in the loans that were repurchased by the sales partners in installments. Interest on deposits with banks was RMB1.0 million (US$0.1 million) for the first half of 2026, compared to RMB2.9 million in the same period of 2025, primarily due to decreased average daily balance of time deposits. Total interest and fees expenses was RMB177.9 million (US$26.2 million) in the first half of 2026, compared to RMB271.7 million in the same period in 2025. The decrease in total interest and fees expenses was mainly due to the decrease in average daily balance of interest-bearing borrowings. Net interest and fees income was RMB(88.4) million (US$(13.0) million) for the first half of 2026, as compared to an income of RMB143.9 million in the same period of 2025. Net revenue under the commercial bank partnership model, representing fees charged to commercial banks for services including introducing borrowers, initial credit assessment, facilitating loans from the banks to the borrower and providing technical assistance to the borrower and banks, net of fees paid to third-party insurance company and commissions paid to sales channels, was RMB3.9 million (US$0.6 million) for the first half of 2026 as compared to RMB1.9 million in the same period of 2025. The increase primarily reflected the Company's continued activities under the commercial bank partnership model. Collaboration cost for sales partners was RMB0.8 million (US$0.1 million) for the first half of 2026, compared to RMB48.9 million in the same period of 2025 due to the decrease in new loans facilitated. Net interest and fees income after collaboration cost turned negative to RMB(85.3) million (US$(12.6) million) for the first half of 2026 from RMB96.9 million in the same period of 2025. Provision for credit losses representing provision for credit losses under the trust lending model and the expected credit losses of guarantee under the commercial bank partnership model in relation to certain financial guarantee arrangements the Company entered into with a third-party guarantor, who provides guarantee services to commercial bank partners, increased to RMB340.7 million (US$50.2 million) for the first half of 2026 from RMB31.2 million in the same period in 2025. The increase was mainly due to the loan performances affected by economic uncertainties. Realized gains/(losses) on sales of investments, net representing realized gains from the sales of investment securities, were nil, compared to losses of RMB4.1 million for the same period of 2025. Other gains, net were net loss of RMB12.8 million (US$1.9 million) for the first half of 2026 as compared to gains of RMB8.9 million in the same period of 2025. Total operating expenses was RMB43.1 million (US$6.3 million) in the first half of 2026, compared with RMB101.4 million in the same period of 2025. Employee compensation and benefits was RMB27.6 million (US$4.1 million) in the first half of 2026 as compared to RMB52.9 million in the same period in 2025. The Company implemented organizational restructuring and continued efforts to align its operating structure with its current business scale and strategic priorities. Taxes and surcharges was RMB1.1 million (US$0.2 million) in the first half of 2026, compared to RMB6.8 million in the same period of 2025, primarily attributable to the decrease of "service fees charged to trust plans" which is a non-deductible item in value added tax ("VAT"). According to the PRC tax regulations, "service fees charged to trust plans" incur a 6% VAT on the subsidiary level, but are not recorded as an input VAT on a consolidated trust plan level. "Service fees charged to trust plans" decreased in the first half of 2026 compared to the same period of 2025. Since the Company has strengthened its collaboration with a third-party asset management company in post-loan services, a portion of service fees were paid to such asset management company directly by the trust plans. Operating lease cost was RMB3.4 million (US$0.5 million) for the first half of 2026 as compared to RMB4.1 million for the same period of 2025. Other expenses was RMB10.8 million (US$1.6 million) in the first half of 2026 as compared to RMB37.6 million in the same period of 2025, primarily due to the decrease in fees paid to third-party channeling companies for introducing borrowers. Income tax benefit was RMB93.7 million (US$13.8 million) in the first half of 2026, as compared to RMB11.1 million in the same period of 2025. Effective tax rate was 19.0% in the first half of 2026 as compared to 21.5% in the same period of 2025. Net loss was RMB399.5 million (US$58.9 million) in the first half of 2026, as compared to net loss of RMB40.4 million in the same period of 2025. Basic and diluted earnings per ADS were RMB(40.1) (US$(5.9)) and RMB(40.1) (US$(5.9)), respectively, in the first half of 2026, compared to RMB(5.9) and RMB(6.3), respectively, in the same period of 2025, calculated based on the current ADS ratio (each ADS representing 200 Class A ordinary shares). As of June 30, 2026, the Company had cash and cash equivalents and restricted cash of RMB252.3 million (US$37.2 million), compared with RMB338.2 million as of December 31, 2025, including RMB96.6 million (US$14.2 million) and RMB183.0 million related to structured funds as of June 30, 2026 and December 31, 2025, respectively, which could only be used to fund new loans and relevant business activities. The delinquency ratio (excluding loans held for sale) for loans originated by the Company was 63.4% as of June 30, 2026 compared to 50.3% as of December 31, 2025. The increase was mainly due to the decrease of outstanding loan principal as of June 30, 2026 resulted from the Company's proactive control over new loan disbursements. The NPL ratio (excluding loans held for sale) for loans originated by the Company decreased from 35.6% as of December 31, 2025 to 32.3% as of June 30, 2026. Recent Development Share Repurchase On March 16, 2022, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to US$20 million of its ordinary shares in the form of American depositary shares ("ADSs") during a period of up to 12 months commencing on March 16, 2022. On March 16, 2023, the Company's board of directors authorized to extend the share repurchase program for 12 months commencing on March 16, 2023. On March 16, 2024, the Company's board of directors authorized to extend the share repurchase program for 24 months commencing on March 16, 2024, and raise the cap of such plan to USD30.0 million, commencing on May 27, 2024. On March 16, 2026, the Company's board of directors authorized to extend the share repurchase program for 24 months commencing on March 16, 2026. As of June 30, 2026, the Company had repurchased an aggregate of approximately US$19.0 million worth of its ADSs under this share repurchase program. Exchange Rate The Company's business is primarily conducted in China and all of the revenues are denominated in Renminbi ("RMB"). This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2026. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on June 30, 2026, or at any other rate. Safe Harbor Statement This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "confident" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: its goals and strategies, its ability to achieve and maintain profitability, its ability to retain existing borrowers and attract new borrowers, its ability to maintain and enhance the relationship and business collaboration with its trust company partners and to secure sufficient funding from them, the effectiveness of its risk assessment process and risk management system, its ability to maintain low delinquency ratios for loans it originated, fluctuations in general economic and business conditions in China, and relevant government laws, regulations, rules, policies or guidelines relating to the Company's corporate structure, business and industry. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update such information, except as required under applicable law. About CNFinance Holdings Limited CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company") is a leading home equity loan service provider in China. CNFinance, through its operating subsidiaries in China, conducts business by connecting demands and supplies through collaborating with sales partners and trust companies under the trust lending model, and sales partners, local channel partners and commercial banks under the commercial bank partnership model. Sales partners and local channel partners are responsible for recommending micro- and small-enterprise ("MSE") owners with financing needs to the Company and the Company introduces eligible borrowers to licensed financial institutions with sufficient funding sources including trust companies and commercial banks who will then conduct their own risk assessments and make credit decisions. The Company's primary target borrower segment is MSE owners who own real properties in Tier 1 and Tier 2 cities and other major cities in China. The Company's risk mitigation mechanism is embedded in the design of its loan products, supported by an integrated online and offline process focusing on risks of both borrowers and collateral and further enhanced by effective post-loan management procedures. View original content:https://www.prnewswire.com/news-releases/cnfinance-announces-first-half-of-2026-unaudited-financial-results-302862920.html

GUANGZHOU, China, Dec. 10, 2025 /PRNewswire/ -- CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company"), a leading home equity loan service provider in China, today announced the results of its extraordinary general meeting of shareholders held at 22nd Floor, South Finance Building, Chunrong 3rd Road, Yuancun Street, Tianhe District, Guangzhou City, Guangdong Province, People's Republic of China at 10:00 AM (Hong Kong time) on December 10, 2025. At the extraordinary general meeting, each of the following resolutions submitted for shareholder approval was adopted, and after the adoption of the proposed resolutions, all corporate authorizations and actions contemplated thereunder were approved: 1. As an ordinary resolution that the Company shall adopt a dual-class shareholding structure by amending the authorised share capital of the Company: (a) FROM: US$380,000 divided into 3,800,000,000 Ordinary Shares of a nominal or par value of US$0.0001 each (b) TO: US$2,000,000 divided into 18,000,000,000 Class A Ordinary Shares of a nominal or par value of US$0.0001 each and 2,000,000,000 Class B Ordinary Shares of a nominal or par value of US$0.0001 each, by: (i) the re-designation and reclassification of 1,559,576,960 authorised issued Ordinary Shares of a nominal or par value of US$0.0001 each into 1,559,576,960 Class A Ordinary Shares of a nominal or par value of US$0.0001 each in the capital of the Company; (ii) the re-designation and reclassification of 2,240,423,040 authorised and unissued Ordinary Shares into 2,240,423,040 Class A Ordinary shares of a nominal or par value of US$0.0001 each in the capital of the Company; and (iii) the increase in the authorised share capital of the Company by the creation of 14,200,000,000 authorised but unissued Class A Ordinary Shares of a nominal or par value of US$0.0001 each in the capital of the Company and 2,000,000,000 authorised but unissued Class B Ordinary Shares of a nominal or par value of US$0.0001 each in the capital of the Company. 2. As a special resolution that the existing second amended and restated memorandum and articles of association of the Company be replaced in their entirety with a new third amended and restated memorandum and articles of association. 3. As an ordinary resolution that, any director of the Company (the "Director") be authorized to take any and all actions that might be necessary to effect the foregoing resolutions as such Director, in his or her absolute discretion, thinks fit. Safe Harbor Statement This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "confident" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: its goals and strategies, its ability to achieve and maintain profitability, its ability to retain existing borrowers and attract new borrowers, its ability to maintain and enhance the relationship and business collaboration with its trust company partners and to secure sufficient funding from them, the effectiveness of its risk assessment process and risk management system, its ability to maintain low delinquency ratios for loans it originated, fluctuations in general economic and business conditions in China, and relevant government laws, regulations, rules, policies or guidelines relating to the Company's corporate structure, business and industry. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update such information, except as required under applicable law. About CNFinance Holdings Limited CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company") is a leading home equity loan service provider in China. CNFinance, through its operating subsidiaries in China, conducts business by connecting demands and supplies through collaborating with sales partners and trust companies under the trust lending model, and sales partners, local channel partners and commercial banks under the commercial bank partnership model. Sales partners and local channel partners are responsible for recommending micro- and small-enterprise ("MSE") owners with financing needs to the Company and the Company introduces eligible borrowers to licensed financial institutions with sufficient funding sources including trust companies and commercial banks who will then conduct their own risk assessments and make credit decisions. The Company's primary target borrower segment is MSE owners who own real properties in Tier 1 and Tier 2 cities and other major cities in China. The Company's risk mitigation mechanism is embedded in the design of its loan products, supported by an integrated online and offline process focusing on risks of both borrowers and collateral and further enhanced by effective post-loan management procedures. For more information, please contact: CNFinance E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/cnfinance-announces-the-results-of-its-extraordinary-general-meeting-302637741.html

This article first appeared on GuruFocus. Sales Partners: Total of 2,184 sales partners, a year-on-year increase of 2%. Active Sales Partners: 1,485 sales partners introduced borrowers, representing a 3.3% growth. Loan Transactions: Decreased by 78.1% year on year. Total Loan Origination: Dropped by 85.4%. Loan Balance: RMB11.2 billion, a decrease of 29.6% compared to last year. Interest Income: RMB416 million, a decline of 55% year on year. Financing Cost: Decreased by 32%. Operating Expenses: Fell by 74%. Net Loss: RMB40.4 million, primarily due to an impairment loss provision of RMB31.3 million. Nonperforming Loan Ratio: 16.9% as of June 30, 2025. NPL Recovery Rate: Achieved 103% in the first half. Warning! GuruFocus has detected 4 Warning Signs with CNF. Is CNF fairly valued? Test your thesis with our free DCF calculator. Release Date: August 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CNFinance Holdings Ltd (NYSE:CNF) signed a total of 2,184 sales partners, marking a year-on-year increase of 2%. The company achieved a 103% nonperforming loan (NPL) recovery rate in the first half of 2025. Operating expenses fell by 74%, demonstrating strong cost control capabilities. The company optimized its organizational structure and streamlined personnel, resulting in significant cost reductions. CNFinance Holdings Ltd (NYSE:CNF) expanded into new business areas and launched new products to meet market demands. The number of loan transactions decreased by 78.1% year on year. Total loan origination dropped by 85.4%, reflecting a significant decline in lending activity. The loan balance decreased by 29.6% compared to the previous year. Interest income declined by 55% year on year. The nonperforming loan ratio rose to 16.9%, indicating increased credit risk. Q: Can you provide an overview of CNFinance Holdings Ltd's performance in the first half of 2025? A: Jun Qian, Vice President and Director, reported that CNFinance focused on survival and strategic adjustments amidst a challenging market. The company signed 2,184 sales partners, a 2% increase year-on-year, and saw a 3.3% growth in partners introducing borrowers. However, loan transactions decreased by 78.1%, and total loan origination dropped by 85.4% due to efforts to control loan issuance and reduce nonperforming loans. Q: What were the financial results for CNFinance Holdings Ltd in the first half of 2025? A: The company reported an interest income of RMB416 million, a 55% decline year-on-year. Financing costs decreased by 32%, and operating expenses fell by 74%, showcasing strong cost control. The net loss was RMB40.4 million, primarily due to an impairment loss provision of RMB31.3 million. Q: How did CNFinance Holdings Ltd manage its nonperforming loans (NPLs) in the first half of 2025? A: The nonperforming loan ratio was 16.9% as of June 30, 2025. Despite the rise in NPL ratio, the company effectively contained new NPLs and achieved a 103% NPL recovery rate through diversified reduction measures. Q: What strategic priorities did CNFinance Holdings Ltd focus on during the first half of 2025? A: The company prioritized reducing NPLs, stabilizing funding sources by engaging new institutional investors, and expanding into new business areas. They refined existing products and launched new ones to meet market demands. Q: What is CNFinance Holdings Ltd's outlook and strategy moving forward? A: CNFinance will continue to focus on survival and victory by containing nonperforming loans and optimizing new growth. The core strategy includes dedicating resources to NPL reduction, ensuring stable funding channels, and supporting new business development. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

GUANGZHOU, China, Aug. 28, 2025 /PRNewswire/ -- CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company"), a leading home equity loan service provider in China, today announced its unaudited financial results for the first half of 2025 ended June 30, 2025. "Given the current economic climate and real estate market conditions, we have strategically reduced new loan issuance to focus on managing existing portfolio quality. This has resulted in significantly lower loan origination volume and interest income compared to the same period last year, with our loan balance as of June 30, 2025 also showing a decline from June 2024 levels. Correspondingly, we've achieved meaningful reductions in interest costs while making progress in operational efficiency - notably decreasing both compensation expenses and lease costs year-over-year through disciplined cost management initiatives. While actively managing our existing portfolio, we are simultaneously introducing new market-driven products to optimize growth. Since the beginning of this year, we have established partnerships with supply chain finance firms by providing operational capital, with current business volume exceeding RMB 100 million. In summary, amid current challenging conditions, we remain committed to reducing non-performing ratios while actively exploring new growth to sustain shareholder value in the future." Commented Mr. Zhai Bin, Chairman and CEO of CNFinance. First Half of 2025 Financial Results Total interest and fees income decreased by 55.1% to RMB415.7 million (US$58.0 million) for the first half of 2025 from RMB926.5 million in the same period of 2024. Interest and financing service fees on loans decreased by 54.4% to RMB380.2 million (US$53.1 million) for the first half of 2025 from RMB834.1 million in the same period of 2024, primarily attributable to the decrease of average daily outstanding loan principal in the first half of 2025 as compared to the same period of 2024. Interest income charged to sales partners, representing fee charged to sales partners who choose to repurchase default loans in installments, decreased by 60.8% to RMB32.6 million (US$4.5 million) for the first half of 2025 from RMB83.1 million in the same period of 2024, primarily attributable to a decrease in the loans that were repurchased by the sales partners in installments. Interest on deposits with banks decreased by 68.8% to RMB2.9 million (US$0.4 million) for the first half of 2025 from RMB9.3 million in the same period of 2024, primarily due to decreased average daily balance of time deposits. Total interest and fees expenses decreased by 32.4% to RMB271.7 million (US$37.9 million) in the first half of 2025 from RMB401.7 million in the same period in 2024.The decrease in total interest and fees expenses was mainly due to the 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, as compared to RMB524.8 million in the same period of 2024. Net revenue under the commercial bank partnership model, representing fees charged to commercial banks for services including introducing borrowers, initial credit assessment, facilitating loans from the banks to the borrower and providing technical assistance to the borrower and banks, net of fees paid to third-party insurance company and commissions paid to sales channels, was RMB1.9 million (US$0.3 million) for the first half of 2025 as compared to RMB58.4 million in the same period of 2024. The decrease was mainly due to the Company's strategic shift from facilitating new loans under commercial bank partnership to disposing non-performing loans. Collaboration cost for sales partners decreased by 69.3% to RMB48.9 million (US$6.8 million) for the first half of 2025 from RMB159.2 million in the same period of 2024 due to the decrease in new loans facilitated. Net interest and fees income after collaboration cost decreased by 77.1% to RMB96.9 million (US$13.5 million) for the first half of 2025 from RMB424.0 million in the same period of 2024. Provision for credit losses representing provision for credit losses under the trust lending model and the expected credit losses of guarantee under the commercial bank partnership model in relation to certain financial guarantee arrangements the Company entered into with a third-party guarantor, who provides guarantee services to commercial bank partners, decreased by 81.7% to RMB31.2 million (US$4.4 million) for the first half of 2025 from RMB170.8 million in the same period in 2024. The decrease was mainly due to the decrease in outstanding loan principal as well as the Company's effort to dispose non-performing loans. Realized gains/(losses) on sales of investments, net representing realized gains from the sales of investment securities, were losses of RMB4.1 million (US$0.6 million), compared to gains of RMB1.2 million for the same period of 2024. Other gains, net were RMB8.9 million (US$1.2 million) for the half of 2025 as compared to gains of RMB11.1 million in the same period of 2024. Total operating expenses decreased by 50.5% to RMB101.4 million (US$14.2 million) in the first half of 2025, compared with 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) in the first half of 2025 as compared to RMB86.9 million in the same period in 2024. The Company implemented workforce restructuring to optimize operational efficiency and achieve sustainable cost reduction. Taxes and surcharges decreased by 43.2% to RMB6.8 million (US$1.0 million) in the first half of 2025 from RMB12.0 million in the same period of 2024, primarily attributable to the decrease of "service fees charged to trust plans" which is a non-deductible item in value added tax ("VAT"). According to the PRC tax regulations, "service fees charged to trust plans" incur a 6% VAT on the subsidiary level, but are not recorded as an input VAT on a consolidated trust plan level. "Service fees charged to trust plans" decreased in the first half of 2025 compared to the same period of 2024. Since the Company has strengthened its collaboration with a third-party asset management company in post-loan services, a portion of service fees were paid to such asset management company directly by the trust plans. Operating lease cost decreased by 52.9% to RMB4.1 million (US$0.6 million) for the first half of 2025 as compared to RMB8.8 million for the same period of 2024. Other expenses decreased by 61.2% to RMB37.6 million (US$5.2 million) in the first half of 2025 from RMB97.0 million in the same period of 2024, primarily due to the decrease in fees paid to third-party channeling companies for introducing borrowers. Income tax benefit was RMB11.1 million (US$1.5 million) in the first half of 2025, as compared to income tax expense of RMB11.0 million in the same period of 2024. Effective tax rate was 21.5% in the first half of 2025 as compared to 18.7% in the same period of 2024. Net loss was RMB40.4 million (US$5.6 million) in the first half of 2025, as compared to net income of RMB47.9 million in the same period of 2024. Basic and diluted earnings per ADS were RMB(0.59) (US$(0.08)) and RMB(0.63) (US$(0.09)), respectively, in the first half of 2025, compared to RMB0.70 and RMB0.70, respectively, in the same period of 2024. As of June 30, 2025, the Company had cash and cash equivalents and restricted cash of RMB0.8 billion (US$0.1 billion), compared with RMB1.2 billion as of December 31, 2024, including RMB0.4 billion (US$58.8 million) and RMB0.8 billion from structured funds as of June 30, 2025 and December 31, 2024, respectively, which could only be used to grant new loans and activities. 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 increase was mainly due to the decrease of outstanding loan principal as of June 30, 2025 resulted from the disposal of non-performing loans. 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. Recent Development Share Repurchase On March 16, 2022, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to US$20 million of its ordinary shares in the form of American depositary shares ("ADSs") during a period of up to 12 months commencing on March 16, 2022. On March 16, 2023, the Company's board of directors authorized to extend the share repurchase program for 12 months commencing on March 16, 2023. On March 16, 2024, the Company's board of directors authorized to extend the share repurchase program for 24 months commencing on March 16, 2024, and raise the cap of such plan to USD30.0 million, commencing on May 27, 2024. As of June 30, 2025, the Company had repurchased an aggregate of approximately US$18.1 million worth of its ADSs under this share repurchase program. Conference Call CNFinance's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Thursday, August 28, 2025 (8:00 PM Beijing/ Hong Kong Time on the same day). Dial-in numbers for the live conference call are as follows: A telephone replay of the call will be available after the conclusion of the conference call until 11:59 PM ET September 4, 2025 Dial-in numbers for the replay are as follows: A live and archived webcast of the conference call will be available on the Investor Relations section of CNFinance's website at http://ir.cashchina.cn/. Exchange Rate The Company's business is primarily conducted in China and all of the revenues are denominated in Renminbi ("RMB"). This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2025. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on June 30, 2025, or at any other rate. Safe Harbor Statement This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "confident" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: its goals and strategies, its ability to achieve and maintain profitability, its ability to retain existing borrowers and attract new borrowers, its ability to maintain and enhance the relationship and business collaboration with its trust company partners and to secure sufficient funding from them, the effectiveness of its risk assessment process and risk management system, its ability to maintain low delinquency ratios for loans it originated, fluctuations in general economic and business conditions in China, and relevant government laws, regulations, rules, policies or guidelines relating to the Company's corporate structure, business and industry. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update such information, except as required under applicable law. About CNFinance Holdings Limited CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company") is a leading home equity loan service provider in China. CNFinance, through its operating subsidiaries in China, conducts business by connecting demands and supplies through collaborating with sales partners and trust companies under the trust lending model, and sales partners, local channel partners and commercial banks under the commercial bank partnership model. Sales partners and local channel partners are responsible for recommending micro- and small-enterprise ("MSE") owners with financing needs to the Company and the Company introduces eligible borrowers to licensed financial institutions with sufficient funding sources including trust companies and commercial banks who will then conduct their own risk assessments and make credit decisions. The Company's primary target borrower segment is MSE owners who own real properties in Tier 1 and Tier 2 cities and other major cities in China. The Company's risk mitigation mechanism is embedded in the design of its loan products, supported by an integrated online and offline process focusing on risks of both borrowers and collateral and further enhanced by effective post-loan management procedures. View original content:https://www.prnewswire.com/news-releases/cnfinance-announces-first-half-of-2025-unaudited-financial-results-302540924.html SOURCE CNFinance Holdings Limited

It's nice to see the CNFinance Holdings Limited (NYSE:CNF) share price up 27% in a week. But will that repair the damage for the weary investors who have owned this stock as it declined over half a decade? Probably not. In fact, the share price has tumbled down a mountain to land 78% lower after that period. The recent bounce might mean the long decline is over, but we are not confident. The fundamental business performance will ultimately determine if the turnaround can be sustained. On a more encouraging note the company has added US$12m to its market cap in just the last 7 days, so let's see if we can determine what's driven the five-year loss for shareholders. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Looking back five years, both CNFinance Holdings' share price and EPS declined; the latter at a rate of 41% per year. This fall in the EPS is worse than the 26% compound annual share price fall. So investors might expect EPS to bounce back -- or they may have previously foreseen the EPS decline. You can see below how EPS has changed over time (discover the exact values by clicking on the image). Dive deeper into CNFinance Holdings' key metrics by checking this interactive graph of CNFinance Holdings's earnings, revenue and cash flow. CNFinance Holdings shareholders are down 55% for the year, but the market itself is up 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 12% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that CNFinance Holdings is showing 4 warning signs in our investment analysis , and 2 of those are concerning... For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.