CNFinance Holdings Limited (CNF) Q4 2025 earnings summary

Executive summary

• Total operating income declined sharply from RMB553.3 million in 2024 to RMB79.6 million (US$11.1 million) in 2025, reflecting a significant contraction in business volume and profitability.

• Net income dropped from RMB37.8 million in 2024 to a net loss of RMB470.4 million (US$67.3 million) in 2025, driven by higher credit losses and reduced revenue.

• Home equity loan origination volume fell 83.6% year-over-year to RMB1.6 billion in 2025, with the number of borrowers also declining sharply.

• The company’s risk metrics deteriorated, with the NPL ratio (excluding loans held for sale) rising to 35.62% at year-end 2025 from 8.50% in 2024.

Financial highlights

• Interest and fees income decreased to RMB575.8 million in 2025 from RMB1,538.6 million in 2024, mainly due to lower outstanding loan principal.

• Net interest and fees income after collaboration cost dropped to RMB31.9 million in 2025 from RMB588.3 million in 2024.

• Provision for credit losses surged to RMB480.9 million in 2025, up from RMB105.2 million in 2024, reflecting increased NPLs.

• Total operating expenses decreased to RMB182.8 million in 2025 from RMB399.8 million in 2024, mainly due to lower employee compensation and other cost controls.

• Adjusted net income (non-GAAP) was a loss of RMB470.4 million in 2025, compared to a profit of RMB52.7 million in 2024.

Outlook and guidance

• Management expects continued challenges due to macroeconomic headwinds, high NPL ratios, and a shrinking borrower base.

• The company plans to focus on risk management, cost control, and diversification of funding sources to stabilize operations.