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CNF

CNFinance Holdings Limited

CNF

CNFinance Holdings Limited • NYSE
$5.48 ▼ -0.37% (-0.02)
Market Cap $16.42 M
52w High $13.90
52w Low $2.36
Dividend Yield 0%
P/E -4.85
Volume 2.33K
Outstanding Shares 3.00M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $44.03M $28.494M $-20.186M -45.846% $-60 $0
Q1-2025 $44.03M ▼ $28.494M ▼ $-20.186M ▼ -45.846% ▼ $-60 ▼ $0
Q4-2024 $135.928M $52.643M $-5.078M -3.736% $-13.2 $0
Q3-2024 $135.928M ▼ $52.643M ▲ $-5.078M ▼ -3.736% ▼ $-13.2 ▼ $0
Q2-2024 $176.698M $47.853M $23.97M 13.565% $8 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $922.266M ▲ $12.52B $8.489B $4.031B
Q1-2025 $0 ▼ $12.52B ▼ $8.489B ▼ $4.031B ▼
Q4-2024 $1.795B ▲ $15.027B $10.97B $4.058B
Q3-2024 $0 ▼ $15.027B ▼ $10.97B ▼ $4.058B ▼
Q2-2024 $1.787B $17.279B $13.22B $4.059B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-20.186M $0 $0 $0 $0 $0
Q1-2025 $-20.186M ▼ $0 $0 $0 $0 $0
Q4-2024 $-5.078M $0 $0 $0 $0 $0
Q3-2024 $-5.078M ▼ $0 $0 $0 $0 $0
Q2-2024 $23.97M $0 $0 $0 $0 $0

Five-Year Company Overview

Income Statement

Income Statement CNFinance’s income statement shows a business that is consistently profitable, but with pressure on growth and margins. Revenue has been broadly flat over several years and dipped most recently, suggesting a tougher lending environment and possibly more cautious loan growth. Profitability remains positive, but operating profit and net income are now much thinner than a few years ago, pointing to rising pressure from funding costs, competition, or credit losses. Earnings per share have swung sharply, likely reflecting changes in share count or share structure more than the underlying business. Overall, the income statement tells a story of a lender that can still make money, but with less cushion than before and limited growth momentum in the top line.

Balance Sheet

Balance Sheet The balance sheet looks relatively stable, with only modest changes over the past few years. Total assets have been fairly steady, which fits a controlled approach to expanding the loan book. Cash on hand remains meaningful, though it has stepped down from a recent peak, showing some use of liquidity but not a strained position. Debt levels have been trending lower while shareholder equity has inched up. This combination suggests gradual de‑leveraging and slow but steady capital build through retained earnings. The company still relies on borrowing to fund its loans, but the balance sheet trajectory is moving in a more conservative, less leveraged direction.

Cash Flow

Cash Flow Cash flow is a relative bright spot. The company has generated positive operating cash flow in each of the past five years, often comfortably so. This indicates that the core lending operations are producing real cash, not just accounting profits. Free cash flow has also been consistently positive, helped by very light capital spending needs. The business model does not require heavy investment in physical assets, which supports financial flexibility. This pattern of reliable cash generation gives the company room to manage through credit cycles, adjust funding, and potentially absorb periods of weaker earnings, provided credit quality remains under control.

Competitive Edge

Competitive Edge CNFinance occupies a focused niche: home‑equity style loans for small and micro business owners in China who are often overlooked by traditional banks. Its strengths include a nationwide branch and partner network, deep local knowledge, and a risk‑sharing model with sales partners that helps align incentives and reduce pure credit exposure. The focus on borrowers with property in major cities provides stronger collateral than many unsecured small‑business lenders, which can be an important safety net in a stressed environment. Efforts to lower funding costs and work with established trust companies also support its positioning versus smaller, less connected rivals. On the other hand, CNFinance operates in a sensitive part of the Chinese financial system: property‑linked lending to small businesses. It faces macro risks tied to the housing market and broader economic conditions, as well as ongoing regulatory scrutiny. Competition from banks and fintech lenders remains intense. Overall, the company has a defensible niche and some real competitive advantages, but they are being tested by a challenging market backdrop.

Innovation and R&D

Innovation and R&D Innovation at CNFinance is more about process and risk management than about flashy new products. The company’s key edge lies in its hybrid model that blends online and offline processes, supported by AI‑driven credit scoring and real‑time risk assessment. This allows it to approve and fund loans quickly, which matters a lot to small business owners with urgent cash needs. Management has also expressed interest in emerging technologies like blockchain, though this appears to be more exploratory than central to the business today. Recent communications suggest a shift in emphasis away from new product lines and toward improving asset quality, tightening risk controls, and refining existing offerings. In other words, innovation is currently focused on better underwriting, faster and safer processes, and optimizing the current platform rather than expanding into entirely new areas. Execution on these risk and technology initiatives will be critical to protecting the loan book in a difficult credit environment.

Summary

Putting it all together, CNFinance looks like a specialist lender with steady cash generation, a reasonably solid balance sheet, and a niche competitive position, but with clear pressure on growth and profitability. The business is still earning money, but margins have narrowed versus earlier years, and revenue has lost momentum. At the same time, the company has been gradually reducing leverage and building equity, supported by reliable free cash flow and low capital spending needs. This provides some resilience. Strategically, CNFinance’s strengths lie in its focus on underserved small business borrowers, its collateral‑backed lending in major cities, and its risk‑sharing and partner network model. Its technology‑enabled underwriting and fast approval process add to this edge. However, the company remains exposed to China’s property and small‑business cycles, as well as regulatory and funding risks. Looking ahead, the key variables to watch are credit quality, funding costs, loan growth discipline, and how well the firm executes on its risk‑mitigation and technology‑driven underwriting strategy. The planned reverse share split indicates that the market has been skeptical, so any sustained improvement in asset quality and earnings stability would likely be an important signal of progress rather than a given outcome.

NEWS

November 10, 2025 · 6:30 AM UTC

CNFINANCE TO HOLD AN EXTRAORDINARY GENERAL MEETING ON DECEMBER 10, 2025

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October 14, 2025 · 6:05 AM UTC

CNFinance Holdings Limited Regains Compliance with NYSE ADS Trading Price Requirement

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