CNFinance Holdings Limited

Good day and welcome to the CN Finance Holdings Limited first half of 2025 Financial Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to IR Manager, Matthew Liu. Please go ahead.

Matthew Liu Thank you. And welcome to the CN Finance first half of 2025 Financial Results Conference call. Our Director and Vice President, Mr. Qianjun, will walk us through the operating and financial results After that, we will have the Q&A section. Before we start, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in 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, target, going forward, outlook, and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties, and other factors. all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under law. Now, please welcome Mr. Chen Jun.

Hello, everyone. In the first half of 2025, in a complex and diverse market environment, we will continue to use the idea of survival and victory as our guiding principles, and actively respond to challenges. Hello, everyone.

In the first half of 2025, amidst the complex and ever-changing market environment, CNF adhered to the guiding principle of survival first, victory first, actively tackled challenges, and steadily advanced strategic adjustments and business optimizations. Now, I'd like to report to you on our operational and financial performance for the first half of the year.

As of June 30, 2025, the company has signed a total of 2,184 loan partners, which is a 2% increase. There are 1,458 effective loan partners, which is a 3.3% increase. But due to the company's initiative to control the amount, focus on saving and reducing bad assets, The number of deposits decreased by 78.1% and the amount of deposits decreased by 85.4%. By the end of the second quarter, the loan amount was 112.63 billion yuan, which decreased by 29.6%. We have always insisted on the strategy of accumulating and saving as much as possible, focusing our resources on risk-solving and asset quality improvement. Although the short-term performance has been suppressed, we have established a solid foundation for long-term stable development.

As of June 30, 2025, our company has signed a total of 2,184 sales partners, marking a year-on-year increase of 2%. We had an aggregate of 1,485 sales partners who had introduced borrowers to us, representing a 3.3% growth. However, due to our proactive efforts to control loan issuance, and focused on reducing non-performing loans in our existing portfolio, the number of loan transactions decreased by 78.1 percent year on year, and the total loan origination dropped by 85.4 percent. By the end of the second quarter, our loan balance stood at 11.2 billion RMB, a decrease of 29.6 percent compared to that of last year. We adhere to the strategy of leveraging existing assets and optimizing new ones, focusing our resources on risk mitigation and asset quality enhancement. Although this approach puts pressure on short-term performance, it lays a solid foundation for long-term steady growth.

上半年实现贷款利息及相关收入4.16亿元同比下降了55%, In the first half of the year, our interest income was 416 million RMB, a decline of 55% year-on-year.

Our financing cost decreased by 32%, and operating expenses fell by 74%, demonstrating the company's strong cost control capabilities. Our net loss was 40.4 million RMB, primarily due to an impairment loss provision of 31.3 million RMB.

截止到2025年6月30号, 公司发放的贷款的不良率16.9%, As of June 30, 2025, the non-performing loan ratio of the company's loan was 16.9%.

Although the NPL ratio rose, the increase of new NPLs was effectively contained. Through diversified NPL reduction measures, the company achieved a 103% NPL recovery rate in the first half. During the first half, the company optimized its organizational structure and streamline personnel, resulting in a significant reduction in operating costs.

公司在上半年的三项重点工作包括, 第一,压降不良资产,创新并利用有效的压降工具, 第二,稳定资金端,引进了一批以地方AMC为主的新的机构资金, 保证了融资渠道的畅通, 第三,拓展了新的业务,精进产品, 推出了符合市场需求的新产品,

In one word, our key priorities in the first half included, first, reducing MPLs by innovating and leveraging effective reduction tools. Second, we've stabilized our funding source by bringing in a bunch of new institutional investors, mainly local AMCs, to ensure smooth financing channels. Third, We have expanded into new business areas. We refined our existing products and launched new ones that meet market demands.

In the face of the still severe market environment, the company will continue to adhere to the guiding ideas of survival first and victory first, and use global storage as a core strategy to adhere to three key tasks, namely to continue to concentrate on resource support, to stabilize the capital,

Facing continued market challenges, the company will uphold the survival first, victory first principle. With containing non-performing loans and optimizing new growth as the core strategy, we will persist in the three key priorities, dedicating resources to NPR reduction, ensuring stable funding channels, and supporting new business development.

Thank you.

We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Once again, to ask a question, that's star then one. There are no questions at this time. I'd like to hand the call back over for any closing remarks.

Thank you, and thank you again for joining us today. If you have any further questions, you can contact us at ir.catchchina.cn. Thank you.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.