CNF

• 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.

• 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.

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.

• 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.

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