CNFinance (NYSE: CNF) swings to net loss and operating cash outflow

Rhea-AI Filing Summary

CNFinance Holdings Limited filed consolidated cash flow data for the six months ended June 30, 2025, showing a sharp shift in cash generation. The company recorded a net loss of RMB 40.4 million, compared with net income of RMB 47.9 million a year earlier.

Net cash from operating activities moved from an inflow of RMB 1.04 billion in 2024 to an outflow of RMB 286.2 million in 2025, driven by swings in credit loss provisions, loans held-for-sale, and working capital items. Investing cash flows turned positive, providing RMB 2.82 billion versus an outflow of RMB 2.03 billion, mainly due to loans originated net of principal collected and proceeds from loan and investment sales.

Financing cash flows shifted to an outflow of RMB 2.90 billion from an inflow of RMB 595.0 million, as repayments of interest-bearing borrowings exceeded new borrowings. Cash, cash equivalents and restricted cash declined to RMB 809.5 million at period end from RMB 1.61 billion a year earlier.

Insights

Cross-border financial reporting analyst

CNFinance shows weaker operating cash flow and lower cash balances, offset by large loan-related investing inflows.

The figures show CNFinance moving from net income of RMB 47.9 million to a net loss of RMB 40.4 million for the six months ended June 30, 2025. Operating cash flow similarly swings from an inflow of RMB 1.04 billion to an outflow of RMB 286.2 million, reflecting changes in provisions, loan sales, and working capital.

At the same time, investing activities generated RMB 2.82 billion in cash, versus an outflow of RMB 2.03 billion in the prior-year period, driven by loan originations net of collections and proceeds from selling loans and investments. Financing cash flow turned negative, with repayments of interest-bearing borrowings of RMB 3.72 billion exceeding new borrowings of RMB 825.2 million.

Cash, cash equivalents and restricted cash declined to RMB 809.5 million at June 30, 2025 from RMB 1.61 billion a year earlier. The overall impact on CNFinance’s financial position depends on loan portfolio performance and future borrowing and repayment patterns, which will be reflected in subsequent reports.

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FAQ

How did CNF’s net income change in the six months ended June 30, 2025?

CNFinance recorded a net loss of RMB 40.4 million for the six months ended June 30, 2025, compared with net income of RMB 47.9 million in the same period of 2024, indicating a notable deterioration in profitability over the year.

What happened to CNF’s operating cash flow in the first half of 2025?

Net cash from operating activities was an outflow of RMB 286.2 million for the six months ended June 30, 2025, versus an inflow of RMB 1.04 billion a year earlier, driven by changes in credit loss provisions, loans held-for-sale, and other operating assets and liabilities.

How did CNF’s investing activities affect cash in the six months ended June 30, 2025?

Investing activities provided RMB 2.82 billion of net cash in the six months ended June 30, 2025, compared with a net cash outflow of RMB 2.03 billion in 2024, mainly due to loans originated net of principal collected and proceeds from loan and investment sales.

What were CNF’s financing cash flows for the first half of 2025?

Financing activities resulted in a net cash outflow of RMB 2.90 billion for the six months ended June 30, 2025. The company raised RMB 825.2 billion from interest-bearing borrowings but repaid RMB 3.72 billion, compared with a net inflow of RMB 595.0 million a year earlier.

What was CNF’s cash and restricted cash balance at June 30, 2025?

Cash, cash equivalents and restricted cash totaled RMB 809.5 million at June 30, 2025, down from RMB 1.61 billion a year earlier. This decline reflects negative operating and financing cash flows partly offset by positive cash from investing activities during the period.

How much interest and income taxes did CNF pay in the first half of 2025?

For the six months ended June 30, 2025, CNFinance paid RMB 271.7 million in interest expense and RMB 31.2 million in income taxes, net of refunds. These supplemental cash flow disclosures highlight the company’s financing costs and tax-related cash outlays for the period.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2026

Commission file number: 001-38726

CNFinance Holdings Limited

(Exact Name of Registrant as Specified in Its Charter)

22/F, South Finance Center, No. 6 Wuheng Road

Tianhe District, Guangzhou City, Guangdong Province

People’s Republic of China

+86-20-62316688 

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒          Form 40-F  ☐

EXHIBIT INDEX

Exhibit No.		Description
99.1		Consolidated statements of cash flows  for the six months ended June 30, 2025

1

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CNFINANCE HOLDINGS LIMITED
Date: February 11, 2026	By:	/s/ Bin Zhai
		Name:	Bin Zhai
		Title:	Chief Executive Officer and Chairman

2

Exhibit 99.1

CNFINANCE HOLDINGS LIMITED

Consolidated statements of cash flows

(Amount in Renminbi (“RMB”))

		Six months ended June 30
		2025				2024
		RMB				RMB
Cash flows from operating activities:
Net (loss)/ income			(40,372,304	)			47,940,590
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Provision for credit losses			31,249,951				170,750,614
Depreciation and amortization			5,353,689				2,094,959
Net losses on disposal of property and equipment			2,657				-
Net loss on disposal of non-marketable equity securities and investment securities			4,125,037				(1,150,084	)
Foreign exchange gains			56,233				-
Deferred tax benefit			(37,750,767	)			(16,090,729	)
Net losses on sale of loans			20,490,504				1,754,394
Loans held-for-sale:
Originations and purchases			(1,520,000	)			(64,480,000	)
Proceeds from sales and paydowns of loans originally classified as held-for-sale			188,017,703				471,712,548
Changes in operating assets and liabilities:
Deposits			49,316,342				(11,420,510	)
Credit risk mitigation position			(87,112,092	)			55,741,261
Other operating assets			(324,965,276	)			167,620,436
Other operating liabilities			(93,135,970	)			212,096,176
Net cash (used in)/provided by operating activities			(286,244,293	)			1,036,569,655
Cash flows from investing activities:
Loans originated, net of principal collected			2,518,353,767				(2,114,706,168	)
Proceeds from sales of available-for-sale investments			209,598,881				127,393,386
Proceeds from disposal of property and equipment and intangible assets			9,702				-
Proceeds from sales of loans			339,152,055				370,207,272
Purchased loans with credit deterioration			26,735,009				(235,048,617	)
Purchase of securities investments			(269,320,000	)			(34,220,000	)
Purchases of property, equipment and intangible assets			(2,485,797	)			(140,624,901	)
Net cash provided by/(used in) investing activities			2,822,043,617				(2,026,999,027	)

Consolidated statements of cash flows (continued)

		Six months ended June 30
		2025				2024
		RMB				RMB
Cash flows from financing activities:
Proceeds from interest-bearing borrowings			825,239,368				8,136,766,333
Repurchase of ordinary shares			-				(2,287,676	)
Repayment of interest-bearing borrowings			(3,722,696,722	)			(7,539,491,640	)
Net cash (used in)/provided by financing activities			(2,897,457,354	)			594,987,018
Net increase/(decrease) in cash, cash equivalents and restricted cash			(361,658,030	)			(395,442,355	)
Cash, cash equivalents and restricted cash at the beginning of period			1,170,386,075				2,001,602,416
Effect of exchange rate change on cash, cash equivalents and restricted cash			814,853				5,980,318
Cash, cash equivalents and restricted cash at the end of period			809,542,898				1,612,140,379
Supplemental disclosures of cash flow information:
Income taxes paid, net of refunds			31,164,945				39,168,795
Interest expense paid			271,727,420				401,738,243

Filing Exhibits & Attachments

1 document

Press Releases

• EX-99.1 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 33.6 KB