CNFinance Holdings Ltd. Q2 FY2025 earnings call

• Signed 2,184 sales partners (+2% y-o-y) and 1,485 introducing borrowers (+3.3% y-o-y).
• Controlled loan issuance, loan balance down 29.6% y-o-y.
• Interest income down 55%, financing costs down 32%, operating expenses down 74%.
• Net loss due to impairment loss provision; NPL ratio 16.9% but new NPLs contained, recovery rate 103%.
• Optimized organizational structure, streamlined personnel, reduced operating costs.
• Priorities: NPL reduction via innovation, stabilized funding with new institutional investors (local AMCs), expanded new business areas, refined and launched new products.

As of June 30, 2025, CNFinance signed 2,184 sales partners (up 2% y-o-y) and 1,485 introducing borrowers (up 3.3% y-o-y). Loan transactions decreased 78.1% y-o-y, total loan origination dropped 85.4%, and loan balance was RMB 11.2 billion (down 29.6% y-o-y). Interest income was RMB 416 million (down 55% y-o-y). Financing costs decreased 32%, operating expenses fell 74%. Net loss was RMB 40.4 million, primarily due to RMB 31.3 million impairment loss provision. NPL ratio was 16.9%, but new NPLs were contained, with 103% NPL recovery rate in the first half. Interest income contributed RMB 416 million, financing costs and operating expenses showed significant reductions.

• Uphold survival first, victory first principle.
• Core strategy: contain NPLs and optimize new growth.
• Key priorities: dedicate resources to NPL reduction, ensure stable funding channels, support new business development.

• Market environment complexity and uncertainty.
• Risks related to forward-looking statements, actual results differing from projections.
• Risks from known or unknown factors beyond control affecting performance.

Q: There are no questions at this time A: Operator indicates no questions at this time