CNFinance Announces First Half of 2026 Unaudited Financial Results
Rhea-AI Summary
CNFinance (NYSE: CNF) reported first-half 2026 unaudited results, highlighting a sharp contraction in its loan business and higher credit costs amid a strategic portfolio transition. Total interest and fees income fell to RMB89.5 million from RMB415.7 million a year earlier as average outstanding loan principal declined. Net interest and fees income swung to a loss of RMB88.4 million, and provision for credit losses surged to RMB340.7 million from RMB31.2 million, leading to a widened net loss of RMB399.5 million versus RMB40.4 million in first-half 2025. Operating expenses dropped about 58% year over year to RMB43.1 million, reflecting restructuring and lower third-party fees. Asset quality indicators were mixed: the delinquency ratio rose to 63.4%, while the NPL ratio improved to 32.3%. Cash and restricted cash stood at RMB252.3 million at June 30, 2026. The company also continued its share repurchase program, having bought back about US$19.0 million of ADSs cumulatively.
Positive
- Operating expenses reduced to RMB43.1 million in H1 2026, down from RMB101.4 million a year earlier, reflecting about a 58% year-over-year decrease.
- Cash recoveries from overdue loans reached approximately RMB600 million in H1 2026, with an overall recovery rate of 103%, indicating strong asset recovery performance on existing overdue assets.
- NPL ratio (excluding loans held for sale) for loans originated decreased from 35.6% at December 31, 2025 to 32.3% at June 30, 2026.
- Net revenue under the commercial bank partnership model increased to RMB3.9 million in H1 2026 from RMB1.9 million in H1 2025, supported by continued activities under this model.
- Total liabilities declined from RMB6,668.5 million at December 31, 2025 to RMB5,946.2 million at June 30, 2026, reducing overall leverage.
Negative
- Total interest and fees income dropped to RMB89.5 million in H1 2026 from RMB415.7 million in H1 2025, driven by lower average daily outstanding loan principal.
- Net interest and fees income turned negative at RMB(88.4) million in H1 2026, compared with positive RMB143.9 million a year earlier.
- Provision for credit losses rose sharply to RMB340.7 million in H1 2026 from RMB31.2 million in H1 2025, reflecting loan performance affected by economic uncertainties.
- Net loss widened to RMB399.5 million in H1 2026 from RMB40.4 million in H1 2025, significantly pressuring overall profitability and earnings per ADS.
- Delinquency ratio (excluding loans held for sale) increased to 63.4% at June 30, 2026 from 50.3% at December 31, 2025, indicating a higher share of delinquent loans in the shrinking portfolio.
- Cash and cash equivalents and restricted cash decreased to RMB252.3 million at June 30, 2026 from RMB338.2 million at December 31, 2025, reducing liquidity, with a portion restricted for structured funds.
News Explained
The June 30 report shows lower reported equity, a large credit-loss charge, and restricted cash alongside ongoing asset recovery.
CNFinance reported unaudited results for the six months ended
The
Cash, cash equivalents and restricted cash totaled
The balance sheet also records
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 28 | First-half earnings | Negative | -17.9% | Financial results showed lower income, higher losses, and worsening credit metrics. |
| Apr 30 | Annual report filing | Neutral | +18.9% | Annual Form 20-F filing produced a positive 24-hour price reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings events moved in opposite directions, with one negative and one positive 24-hour reaction.
Key Terms
delinquency ratio financial
npl ratio financial
vat financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
"During the first half of 2026, we continued to execute our strategy of optimizing our existing portfolio, strengthening asset recovery and improving the quality and efficiency of our business. Against a challenging macroeconomic and industry backdrop, we made meaningful progress in the resolution of existing assets, with cash recoveries from overdue loans reaching approximately
At the same time, we continued to streamline our operations and strengthen cost discipline. Operating expenses decreased by approximately
Our financial results for the first half of 2026 reflect the ongoing transition of our business, including the substantial reduction of our outstanding loan portfolio and the recognition of credit-loss provisions associated with our existing portfolio. While this transition has resulted in near-term pressure on our financial performance, we believe that the actions we are taking are important to strengthening the quality of our balance sheet, improving operating efficiency and positioning the Company for more sustainable development.
Looking ahead, we will remain focused on accelerating asset recovery, executing selected new business initiatives with disciplined risk management, and continuing to enhance organizational efficiency. We will remain prudent in managing our capital and resources while seeking to build a more resilient and sustainable business and create long-term value for our shareholders," commented Mr. Zhai Bin, Chairman and Chief Executive Officer of CNFinance.
First Half of 2026 Financial Results
Total interest and fees income was
Interest and financing service fees on loans was
Interest income charged to sales partners, representing fee charged to sales partners who choose to repurchase default loans in installments was
Interest on deposits with banks was
Total interest and fees expenses was
Net interest and fees income was
Net revenue under the commercial bank partnership model, representing fees charged to commercial banks for services including introducing borrowers, initial credit assessment, facilitating loans from the banks to the borrower and providing technical assistance to the borrower and banks, net of fees paid to third-party insurance company and commissions paid to sales channels, was
Collaboration cost for sales partners was
Net interest and fees income after collaboration cost turned negative to
Provision for credit losses representing provision for credit losses under the trust lending model and the expected credit losses of guarantee under the commercial bank partnership model in relation to certain financial guarantee arrangements the Company entered into with a third-party guarantor, who provides guarantee services to commercial bank partners, increased to RMB340.7 million (
Realized gains/(losses) on sales of investments, net representing realized gains from the sales of investment securities, were nil, compared to losses of
Other gains, net were net loss of
Total operating expenses was
Employee compensation and benefits was
Taxes and surcharges was
Operating lease cost was
Other expenses was
Income tax benefit was
Effective tax rate was
Net loss was
Basic and diluted earnings per ADS were
As of June 30, 2026, the Company had cash and cash equivalents and restricted cash of
The delinquency ratio (excluding loans held for sale) for loans originated by the Company was
The NPL ratio (excluding loans held for sale) for loans originated by the Company decreased from
Recent Development
Share Repurchase
On March 16, 2022, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to
Exchange Rate
The Company's business is primarily conducted in
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the
About CNFinance Holdings Limited
CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company") is a leading home equity loan service provider in
CNFINANCE HOLDINGS LIMITED | ||||||||||||||||
Unaudited condensed consolidated balance sheets | ||||||||||||||||
(In thousands, except for number of shares) | ||||||||||||||||
December 31, 2025 | June 30, 2026 | |||||||||||||||
RMB | RMB | US$ | ||||||||||||||
Assets | ||||||||||||||||
Cash, cash equivalents and restricted cash | 338,188 | 252,349 | 37,192 | |||||||||||||
Loans principal, interest and financing | 2,487,819 | 1,944,447 | 286,576 | |||||||||||||
Allowance for credit losses | (314,049) | (159,847) | (23,559) | |||||||||||||
Net loans principal, interest and financing | 2,173,770 | 1,784,600 | 263,017 | |||||||||||||
Loans held-for-sale | 3,508,003 | 3,087,619 | 455,059 | |||||||||||||
Investment securities | 273,442 | 277,377 | 40,880 | |||||||||||||
Property and equipment | 177,700 | 175,788 | 25,908 | |||||||||||||
Deferred tax assets | 318,346 | 339,137 | 49,983 | |||||||||||||
Deposits | 91,278 | 84,292 | 12,423 | |||||||||||||
Right-of-use assets | 11,760 | 11,760 | 1,733 | |||||||||||||
Guaranteed assets | 1,645,128 | 1,555,313 | 229,225 | |||||||||||||
Other assets | 1,711,504 | 1,552,519 | 228,813 | |||||||||||||
Total assets | 10,249,119 | 9,120,755 | 1,344,233 | |||||||||||||
Liabilities and shareholders' equity | ||||||||||||||||
Interest-bearing borrowings | ||||||||||||||||
Borrowings under agreements to | 2,766,434 | 2,615,591 | 385,490 | |||||||||||||
Other borrowings | 673,141 | 402,584 | 59,334 | |||||||||||||
Accrued employee benefits | 7,918 | 4,928 | 726 | |||||||||||||
Income taxes payable | 259,789 | 200,697 | 29,579 | |||||||||||||
Deferred tax liabilities | 80,737 | 69,137 | 10,190 | |||||||||||||
Lease liabilities | 12,236 | 12,236 | 1,803 | |||||||||||||
Credit risk mitigation position | 1,074,211 | 1,053,976 | 155,337 | |||||||||||||
Other liabilities | 1,794,011 | 1,587,089 | 233,908 | |||||||||||||
- | - | |||||||||||||||
Total liabilities | 6,668,477 | 5,946,238 | 876,367 | |||||||||||||
Class A Ordinary shares ( shares issued and 1,371,643,240 shares | 917 | 917 | 135 | |||||||||||||
Class B Ordinary shares ( and outstanding as of December 31, and outstanding as of June 30, 2026) | - | 1,357 | 200 | |||||||||||||
Treasury stock | (124,680) | (124,680) | (18,376)) | |||||||||||||
Additional paid-in capital | 1,046,619 | 1,046,619 | 154,253 | |||||||||||||
Retained earnings | 2,671,347 | 2,271,866 | 334,832 | |||||||||||||
Accumulated other comprehensive losses | (13,561) | (21,563) | (3,178)) | |||||||||||||
Total shareholders' equity | 3,580,642 | 3,174,517 | 467,866 | |||||||||||||
Total liabilities and shareholders' | 10,249,119 | 9,120,755 | 1,344,233 | |||||||||||||
CNFINANCE HOLDINGS LIMITED | |||||||||||
Unaudited condensed consolidated statements of comprehensive income | |||||||||||
(In thousands, except for earnings per share and earnings per ADS) | |||||||||||
Six months ended June 30 | |||||||||||
2025 | 2026 | 2026 | |||||||||
RMB | RMB | US$ | |||||||||
Interest and fees income | |||||||||||
Interest and financing service fees on loans | 380,218 | 87,680 | 12,922 | ||||||||
Interest income charged to sales partners | 32,567 | 805 | 119 | ||||||||
Interest on deposits with banks | 2,868 | 1,005 | 148 | ||||||||
Total interest and fees income | 415,653 | 89,490 | 13,189 | ||||||||
Interest expenses on interest-bearing borrowings | (271,727) | (177,912) | (26,221) | ||||||||
Total interest and fees expenses | (271,727) | (177,912) | (26,221) | ||||||||
Net interest and fees income | 143,926 | (88,421) | (13,032) | ||||||||
Net revenue under the commercial bank partnership model | 1,941 | 3,873 | 571 | ||||||||
Collaboration cost for sales partners | (48,926) | (784) | (116) | ||||||||
Net interest and fees income after collaboration cost | 96,941 | (85,332) | (12,576) | ||||||||
Provision for credit losses | (31,250) | (340,702) | (50,213) | ||||||||
Net interest and fees income after collaboration cost and | 65,691 | (426,033) | (62,789) | ||||||||
Realized gains on sales of investments,net | (4,125) | - | - | ||||||||
Net losses on sales of loans | (20,491) | (11,324) | (1,669) | ||||||||
Other gains,net | 8,921 | (12,793) | (1,885) | ||||||||
Total non-interest income | (15,695) | (24,117) | (3,554) | ||||||||
Operating expenses | |||||||||||
Employee compensation and benefits | (52,852) | (27,636) | (4,073) | ||||||||
Taxes and surcharges | (6,831) | (1,137) | (168) | ||||||||
Operating lease cost | (4,136) | (3,427) | (505) | ||||||||
Other expenses | (37,605) | (10,851) | (1,599) | ||||||||
Total operating expenses | (101,424) | (43,051) | (6,345) | ||||||||
Income before income tax expense | (51,428) | (493,202) | (72,689) | ||||||||
Income tax benefit/(expense) | 11,056 | 93,721 | 13,813 | ||||||||
Net income/(loss) | (40,372) | (399,481) | (58,876) | ||||||||
Earnings per share | |||||||||||
Basic | (0.03) | (0.02) | (0.003) | ||||||||
Diluted | (0.03) | (0.02) | (0.003) | ||||||||
Earnings per ADS(1 ADS equals 200 ordinary shares) | |||||||||||
Basic | (5.9) | (40.1) | (5.9) | ||||||||
Diluted | (6.3) | (40.1) | (5.9) | ||||||||
Other comprehensive Income | |||||||||||
Foreign currency translation adjustment | 815 | (8,002) | (1,179) | ||||||||
Comprehensive income | (39,557) | (407,483) | (60,056) | ||||||||
Less:net income attributable to non-controlling interests | |||||||||||
Total comprehensive income attributable to ordinary | (39,557) | (407,483) | (60,056) | ||||||||
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SOURCE CNFinance Holdings Limited