CNFinance(CNF) - 2025 Q2 - Quarterly Report

Financial Performance - 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[6] - 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[7] - Net loss was RMB40.4 million (US$5.6 million) in the first half of 2025, compared to net income of RMB47.9 million in the same period of 2024[19] - Net interest and fees income after collaboration cost fell to RMB 96,941, down from RMB 423,971, indicating a decrease of around 77.25%[33] - Comprehensive income attributable to ordinary shareholders decreased to RMB (39,557) for the six months ended June 30, 2025, compared to RMB 53,920 for the same period in 2024[34] Loan and Credit Metrics - The delinquency ratio for loans originated by the Company increased from 29.7% as of December 31, 2024 to 46.0% as of June 30, 2025[21] - Provision for credit losses 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[13] - Provision for credit losses significantly reduced to RMB 31,250 from RMB 170,751, a decrease of approximately 81.69%[33] Operating Expenses - 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[15] - Employee compensation and benefits decreased by 39.2% to RMB52.9 million (US$7.4 million) in the first half of 2025 compared to RMB86.9 million in the same period of 2024[15] Assets and Liabilities - Cash and cash equivalents and restricted cash decreased to RMB0.8 billion (US$0.1 billion) as of June 30, 2025, compared with RMB1.2 billion as of December 31, 2024[20] - Total assets increased to RMB 15,027,115 as of December 31, 2024, up from RMB 12,520,362 as of June 30, 2025, representing a growth of approximately 19.98%[31] - Total liabilities increased to RMB 10,969,556 as of December 31, 2024, from RMB 8,489,169, marking an increase of approximately 29.25%[31] - Total shareholders' equity slightly increased to RMB 4,057,559 as of December 31, 2024, from RMB 4,031,193, reflecting a growth of about 0.65%[31] Taxation - The effective tax rate was 21.5% in the first half of 2025, compared to 18.7% in the same period of 2024[19] Business Partnerships - The Company established partnerships with supply chain finance firms, with current business volume exceeding RMB100 million[4]