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 November 2023
Commission
file number: 001-38726
CNFinance
Holdings Limited
(Exact
Name of Registrant as Specified in Its Charter)
44/F,
Tower G, No. 16 Zhujiang Dong Road
Tianhe
District, Guangzhou City, Guangdong Province 510620
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 ☐
On
November 29, 2023, CNFinance Holdings Limited (the “Company”) issued press release, a copy of which is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
EXHIBIT
INDEX
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: November 29, 2023 |
By: |
/s/ Bin Zhai |
| |
|
Name: |
Bin Zhai |
| |
|
Title: |
Chief Executive Officer and Chairman |
2
Exhibit 99.1
CNFinance
Announces Third Quarter of 2023 Unaudited Financial Results
GUANGZHOU,
China, November 29, 2023 /PRNewswire/ -- CNFinance Holdings Limited (NYSE: CNF) (“CNFinance” or the “Company”),
a leading home equity loan service provider in China, today announced its unaudited financial results for the third quarter ended September
30, 2023.
Third
Quarter 2023 Operational and Financial Highlights
| ● | Total
loan origination volume1 was RMB5,105.1 million (US$699.7 million) in the third
quarter of 2023, representing an increase of 19.9% from RMB4,257.1 million in the same period
of 2022. |
| ● | Total
number of active borrowers2 was 26,624 as of September 30, 2023, representing
an increase of 13.0% from 23,560 as of September 30, 2022. |
| ● | Net
interest and fees income were RMB255.3 million (US$35.1 million) in the third quarter of
2023, representing an increase of 0.4% from RMB254.3 million in the same period of 2022. |
| ● | Net
income was RMB53.0 million (US$7.3 million) in the third quarter of 2023, representing an
increase of 15.2% from RMB46.0 million in the same period of 2022. |
| ● | Basic
and diluted earnings per ADS were RMB0.77 (US$0.11) and RMB0.71 (US$0.10), respectively,
in the third quarter of 2023, compared to RMB0.70 and RMB0.64, respectively, in the same
period of 2022. |
“In
the third quarter of 2023, we continued to focus on growth of scale and asset quality. During this quarter, in order to refine our product
mix and cover a broader range of customers, we continued to work on reducing funding costs. During such quarter, we originated loans
of RMB5.1 billion in total, representing an increase of 19.9% as compared to the same period of 2022. Besides, as a result of our effective
risk control mechanism, we recovered loan principal, interest and penalties which equal to approximately 110% of the actual outstanding
loan principal of delinquent loans in the third quarter of 2023.
Given
China’s current macro-economic condition, our task remains to be growing our business scale and achieving ‘high-quality development’.
We believe the major works to be done are as follows: firstly, in order to serve the financing needs of borrowers with better credit
record and collateral, we will strive to extend our reach to funding partners with lower funding costs; and secondly, we will continue
to reach out to asset management companies to accelerate the disposal of non-performing loans; and thirdly, we aim to adopt our self-developed
big data model to facilitate the credit decisioning process of every loan applications to increase efficiency of loan disbursement.”
Commented Mr. Zhai Bin, Chairman and CEO of CNFinance.
| 1 | Refers
to the total amount of loans CNFinance originated under the trust lending model and loans recommended to commercial banks during the
relevant period. |
| 2 | Refers
to borrowers with outstanding loan principal of home equity loans as at the end of a specific period. |
Third
Quarter 2023 Financial Results
Total
interest and fees income decreased by 5.5% to RMB424.9 million (US$58.3 million) for the third quarter of 2023 from RMB449.7 million
in the same period of 2022.
Interest
and financing service fees on loans decreased by 6.0% to RMB387.9 million (US$53.2 million) for the third quarter of 2023 from RMB412.7
million in the same period of 2022, primarily attributable to the decrease of weighted average interest rate of loans outstanding for
the third quarter of 2023 as compared to the same period of 2022.
Interest
income charged to sales partners, representing interest charged to sales partners who choose to repurchase default loans in installments,
decreased by 2.4% to RMB32.7 million (US$4.5 million) for the third quarter of 2023 from RMB33.5 million in the same period of 2022.
Interest
on deposits with banks increased by 22.9% to RMB4.3 million (US$0.6 million) for the third quarter of 2023 from RMB3.5 million in
the same period of 2022, primarily due to the higher daily average amount of time deposits.
Total
interest and fees expenses decreased by 13.2% to RMB169.6 million (US$23.2 million) for the third quarter of 2023, compared to RMB195.4
million in the same period of 2022, primarily due to the lower funding cost of trust company partners as a result of recent regulatory
development.
Net
interest and fees income was RMB255.3million (US$35.1 million) for the third quarter of 2023, an increase of 0.4% from RMB254.3 million
in the same period of 2022.
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 borrowers and providing technical assistance to the borrowers
and banks, net of fees paid to third-party guarantor and commissions paid to sales channels, was RMB27.6 million (US$3.8million) for
the third quarter of 2023 as compared to RMB0.4 million in the same period of 2022. The Company has been collaborating with commercial
banks since 2021 and such collaboration grew and scaled in the second half of 2022. The outstanding loan principal under the commercial
bank partnership was RMB5.0 billion (US$0.7 billion) as of September 30, 2023 as compared to RMB0.6 billion as of September 30, 2022.
Collaboration
cost for sales partners increased 2.2% to RMB86.9 million (US$11.9 million) for the third quarter of 2023 from RMB85.0 million in
the same period of 2022.
Net
interest and fees income after collaboration cost was RMB196.0 million (US$27.0 million) for the third quarter of 2023, representing
an increase of 15.5% from RMB169.7 million in the same period of 2022.
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, decreased by 71.7% to RMB11.5 million (US$1.6 million) for the
third quarter of 2023 from RMB40.6 million in the same period of 2022. In the third quarter of 2023, some sales partners who forfeited
their Credit Risk Mitigation Positions (CRMPs) due to the inability to fulfil their obligations to repurchase delinquent loans in last
few quarters were able to recommence their payments, which has provided more protection to the loans.
Realized
(losses) /gains on sales of investments, net representing realized (losses) /gains from the sales of investment securities, was a
loss of RMB9.0 million (US$1.2 million), as compared to gains of RMB0.5 million gains for the same period of 2022.
Net
losses on sales of loans was RMB1.5 million (US$0.2 million) for the third quarter of 2023 as compared to RMB0.8 million in the same
period of 2022.
Other
(losses)/gains, net was losses of RMB0.7 million (US$0.1 million) for the third quarter of 2023 as compared to gains of RMB17.0 million
in the same period of 2022.primarily due to the decrease of the balance of CRMPs forfeited by the sales partners as we refined our installment
policies to ease the liquidity pressure of sales partners. When CRMPs deposited by sales partners are confiscated by the Company, the
Company will recognize the amount forfeited in other gain. In the third quarter of 2023, some sales partners who forfeited their CRMPs
were able to continue to fulfil their guarantee responsibility, and associated CRMPs will not be deemed as confiscated.
Total
operating expenses increased by 27.0% to RMB105.5 million (US$14.5 million) for the third quarter of 2023 from RMB83.1 million in
the same period of 2022.
Employee
compensation and benefits increased by 15.5% to RMB57.5 million (US$7.9 million) for the third quarter of 2022 from RMB49.8 million
in the same period of 2022, primarily attributable to an increase in the performance-based bonuses as a result of an increase in loan
origination volume during the third quarter of 2023.
Share-based
compensation expenses for the third quarter of 2023 was nil as compared to RMB1.4 million in the same period of 2022. According to
the Company’s share option plan adopted on December 31, 2019, approximately 50%, 30% and 20% of the option granted was vested on
December 31, 2020, 2021 and 2022, respectively. Related compensation cost of the option granted has been fully recognized as of December
31, 2022.
Taxes
and surcharges increased by 10.4% to RMB8.5 million (US$1.2 million) for the third quarter of 2023 from RMB7.7 million for the same
period of 2022, primarily attributable to the increase of “service fees charged to trust plans” which is a non-deductible
item in value added tax (“VAT”). According to the PRC tax regulations, “service fees charged to trust plans”
incur a 6% VAT on the subsidiary level, but are not recorded as an input VAT on a consolidated trust plan level. “Service fees
charged to trust plans” increased in the third quarter of 2023 compared to the same period of 2022 due to the increase of scale
of some trust plans.
Operating
lease cost increased to RMB4.6 million (US$0.6 million) for the third quarter of 2023 as compared to RMB3.8 million for the same
period of 2022.
Other
expenses increased by 71.1% to RMB34.9 million (US$4.8 million) for the third quarter of 2023 from RMB20.4 million in the same period
of 2022, primarily due to the increase in fees paid to local channels. Local channels are rewarded for referring sales partners to the
Company, and will also receive commission of a certain percentage of loans recommended to the Company by the sales partners they have
referred.
Income
tax expense decreased by 11.4% to RMB14.8 million (US$2.0 million) for the third quarter of 2023 from RMB16.7 million in the same
period of 2022.
Effective
tax rate decreased to 21.8% for the third quarter of 2023 from 26.6% in the same period of 2022.
Net
income increased by 15.2% to RMB53.0 million (US$7.3 million) for the third quarter of 2023 from RMB46.0 million in the same period
of 2022.
Basic
earnings per ADS and diluted earnings per ADS were RMB0.77 (US$0.11) and RMB0.71 (US$0.10), respectively, in the third quarter of
2023, compared to RMB0.70 and RMB0.64, respectively, in the same period of 2022. One ADS represents 20 ordinary shares.
As
of September 30, 2023, the Company had cash, cash equivalents and restricted cash of RMB1.80 billion (US$0.25 billion), compared
to RMB1.77 billion as of December 31, 2022, including RMB0.98 billion (US$0.13 billion) and RMB1.16 billion from structured funds as
of September 30, 2023 and December 31, 2022, respectively, which could only be used to grant new loans and activities within each structured
fund.
The
delinquency ratio (excluding loans held for sale) for loans originated by the Company decreased from 18.3% as of December 31, 2022
to 15.0% as of September 30, 2023. The delinquency ratio for first lien loans (excluding Loans held-for-sale) decreased from 21.8% as
of December 31, 2022 to 17.6% as of September 30, 2023, and the delinquency ratio for second lien loans (excluding Loans held-for-sale)
decreased from 17.6% as of December 31, 2022 to 13.5% as of September 30, 2023.
The
NPL ratio (excluding loans held for sale) for loans originated by the Company increased from 1.1% as of December 31, 2022 to 1.8%
as of September 30, 2023. The NPL ratio for first lien loans (excluding Loans held-for-sale) increased from 1.1% as of December 31, 2022
to 1.7% as of September 30, 2023, and the NPL ratio for second lien loans (excluding Loans held-for-sale) increased from 1.2% as of December
31, 2022 to 1.8% as of September 30, 2023.
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 US$20 million of its ordinary shares in the form of American depositary shares (“ADSs”) during a period of up
to 12 months commencing on March 16, 2022. On March 16, 2023, the Company’s board of directors authorized to extend the share repurchase
program for 12 months commencing on March 16, 2023. As of September 30, 2023, the Company had repurchased an aggregate of approximately
US$16.0 million worth of its ADSs under this share repurchase program.
Conference
Call
CNFinance's
management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, November 29, 2023 (9:00 PM Beijing/ Hong
Kong Time on Wednesday, November 29, 2023).
Dial-in
numbers for the live conference call are as follows:
| International: |
+1-412-902-4272 |
| Mainland
China |
+86-4001-201203 |
| United
States: |
+1-888-346-8982 |
| Hong
Kong: |
+852-3018-4992 |
| Passcode: |
CNFinance |
A
telephone replay of the call will be available after the conclusion of the conference call until 11:59 PM ET on December 6, 2023.
Dial-in
numbers for the replay are as follows:
| International: |
+1-412-317-0088 |
| United
States: |
+1-877-344-7529 |
| Passcode: |
4357541 |
A
live and archived webcast of the conference call will be available on the Investor Relations section of CNFinance’s website at
http://ir.cashchina.cn/.
Exchange
Rate
The
Company’s business is primarily conducted in China and all of the revenues are denominated in Renminbi (“RMB”). This
announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader.
Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2960 to US$1.00, the exchange rate set forth
in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 29, 2023. No representation is
made that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on September 29,
2023, or at any other rate.
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 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”, “confident” and similar statements. The Company may
also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission,
in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors
or employees to third parties. Any statements that are not historical facts, including statements about the Company’s beliefs and
expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: its goals
and strategies, its ability to achieve and maintain profitability, its ability to retain existing borrowers and attract new borrowers,
its ability to maintain and enhance the relationship and business collaboration with its trust company partners and to secure sufficient
funding from them, the effectiveness of its risk assessment process and risk management system, its ability to maintain low delinquency
ratios for loans it originated, fluctuations in general economic and business conditions in China, the impact and future development
of COVID-19 pandemic in China and across the globe, and relevant government laws, regulations, rules, policies or guidelines relating
to the Company’s corporate structure, business and industry. Further information regarding these and other risks is included in
the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current
as of the date of the press release, and the Company does not undertake any obligation to update such information, except as required
under applicable law.
About
CNFinance Holdings Limited
CNFinance
Holdings Limited (NYSE: CNF) (“CNFinance” or the “Company”) is a leading home equity loan service provider in
China. CNFinance, through its operating subsidiaries in China, conducts business by connecting demands and supplies through collaborating
with sales partners and trust companies under the trust lending model, and local channel partners and commercial banks under the commercial
bank partnership model. Sales partners and local channel partners are responsible for recommending micro- and small-enterprise (“MSE”)
owners with financing needs to the Company and the Company introduces eligible borrowers to licensed financial institutions with sufficient
funding sources including trust companies and commercial banks who will then conduct their own risk assessments and make credit decisions.
The Company’s primary target borrower segment is MSE owners who own real properties in Tier 1 and Tier 2 cities and other major
cities in China. The Company’s risk mitigation mechanism is embedded in the design of its loan products, supported by an integrated
online and offline process focusing on risks of both borrowers and collateral and further enhanced by effective post-loan management
procedures.
For
more information, please contact:
CNFinance
E-mail:
ir@cashchina.cn
CNFINANCE
HOLDINGS LIMITED
Unaudited
condensed consolidated balance sheets
(In
thousands, except for number of shares)
| | |
December 31, 2022 | | |
September 30, 2023 | |
| | |
RMB | | |
RMB | | |
US$ | |
| Assets | |
| | |
| | |
| |
| | |
| | |
| | |
| |
| Cash, cash equivalents and restricted cash | |
| 1,772,184 | | |
| 1,804,065 | | |
| 247,268 | |
| Loans principal, interest and financing service fee receivables | |
| 9,456,802 | | |
| 8,973,021 | | |
| 1,229,855 | |
| Allowance for credit losses | |
| 763,996 | | |
| 786,851 | | |
| 107,847 | |
| Net loans principal, interest and financing service fee receivables | |
| 8,692,806 | | |
| 8,186,170 | | |
| 1,122,008 | |
| Loans held-for-sale | |
| 1,844,438 | | |
| 2,348,530 | | |
| 321,893 | |
| Investment securities | |
| 518,645 | | |
| 597,655 | | |
| 81,915 | |
| Property and equipment | |
| 2,284 | | |
| 2,678 | | |
| 367 | |
| Intangible assets and goodwill | |
| 3,488 | | |
| 3,145 | | |
| 431 | |
| Deferred tax assets | |
| 76,905 | | |
| 103,113 | | |
| 14,133 | |
| Deposits | |
| 145,093 | | |
| 160,237 | | |
| 21,962 | |
| Right-of-use assets | |
| 29,777 | | |
| 30,599 | | |
| 4,194 | |
| Guaranteed assets | |
| 726,411 | | |
| 888,186 | | |
| 121,736 | |
| Other assets | |
| 669,889 | | |
| 1,119,226 | | |
| 153,403 | |
| | |
| | | |
| | | |
| | |
| Total assets | |
| 14,481,920 | | |
| 15,243,604 | | |
| 2,089,310 | |
| | |
| | | |
| | | |
| | |
| Liabilities and shareholders’ equity | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | |
| Interest-bearing borrowings | |
| | | |
| | | |
| | |
| Borrowings under agreements to repurchase | |
| 112,642 | | |
| 509,135 | | |
| 69,783 | |
| Other borrowings | |
| 7,727,559 | | |
| 7,166,585 | | |
| 982,262 | |
| Accrued employee benefits | |
| 31,645 | | |
| 22,372 | | |
| 3,066 | |
| Income taxes payable | |
| 186,901 | | |
| 210,456 | | |
| 28,845 | |
| Deferred tax liabilities | |
| 73,752 | | |
| 69,287 | | |
| 9,497 | |
| Lease liabilities | |
| 28,583 | | |
| 29,398 | | |
| 4,029 | |
| Credit risk mitigation position | |
| 1,354,653 | | |
| 1,470,284 | | |
| 201,519 | |
| Other liabilities | |
| 1,028,471 | | |
| 1,610,472 | | |
| 220,734 | |
| | |
| | | |
| | | |
| | |
| Total liabilities | |
| 10,544,206 | | |
| 11,087,989 | | |
| 1,519,735 | |
| | |
| | | |
| | | |
| | |
| Ordinary shares (USD0.0001 par value; 3,800,000,000 shares authorized; 1,559,576,960 shares issued and 1,371,643,240 shares outstanding as of December 31, 2022 and September 30, 2023) | |
| 917 | | |
| 917 | | |
| 126 | |
| Treasury stock | |
| (87,631 | ) | |
| (107,327 | ) | |
| (14,710 | ) |
| Additional paid-in capital | |
| 1,024,204 | | |
| 1,024,204 | | |
| 140,379 | |
| Retained earnings | |
| 2,958,716 | | |
| 3,086,946 | | |
| 423,101 | |
| Accumulated other comprehensive losses | |
| (10,212 | ) | |
| (812 | ) | |
| (111 | ) |
| Non-controlling interests | |
| 51,720 | | |
| 151,687 | | |
| 20,790 | |
| Total shareholders’ equity | |
| 3,937,714 | | |
| 4,155,615 | | |
| 569,575 | |
| | |
| | | |
| | | |
| | |
| Total liabilities and shareholders’ equity | |
| 14,481,920 | | |
| 15,243,604 | | |
| 2,089,310 | |
CNFINANCE
HOLDINGS LIMITED
Unaudited
condensed consolidated statements of comprehensive income
(In
thousands, except for earnings per share and earnings per ADS)
| | |
Three months ended September 30,2023 | |
| | |
2022 | | |
2023 | | |
2023 | |
| | |
RMB | | |
RMB | | |
US$ | |
| Interest and fees income | |
| | |
| | |
| |
| | |
| | |
| | |
| |
| Interest and financing service fees on loans(2) | |
| 412,665 | | |
| 387,922 | | |
| 53,169 | |
| Interest income charged to sales partners | |
| 33,516 | | |
| 32,710 | | |
| 4,483 | |
| Interest on deposits with banks | |
| 3,514 | | |
| 4,301 | | |
| 590 | |
| | |
| | | |
| | | |
| | |
| Total interest and fees income | |
| 449,695 | | |
| 424,933 | | |
| 58,242 | |
| | |
| | | |
| | | |
| | |
| Interest expenses on interest-bearing borrowings | |
| (195,396 | ) | |
| (169,615 | ) | |
| (23,248 | ) |
| | |
| | | |
| | | |
| | |
| Total interest and fees expenses | |
| (195,396 | ) | |
| (169,615 | ) | |
| (23,248 | ) |
| | |
| | | |
| | | |
| | |
| Net interest and fees income | |
| 254,299 | | |
| 255,318 | | |
| 34,994 | |
| | |
| | | |
| | | |
| | |
| Net revenue under the commercial bank partnership model | |
| 405 | | |
| 27,623 | | |
| 3,786 | |
| | |
| | | |
| | | |
| | |
| Collaboration cost for sales partners | |
| (84,961 | ) | |
| (86,895 | ) | |
| (11,910 | ) |
| Net interest and fees income after collaboration cost | |
| 169,743 | | |
| 196,046 | | |
| 26,870 | |
| | |
| | | |
| | | |
| | |
| Provision for credit losses (1) | |
| (40,560 | ) | |
| (11,514 | ) | |
| (1,578 | ) |
| | |
| | | |
| | | |
| | |
| Net interest and fees income after collaboration cost and provision for credit losses | |
| 129,183 | | |
| 184,532 | | |
| 25,292 | |
| | |
| | | |
| | | |
| | |
| Realized (losses)/gains on sales of investments, net | |
| 501 | | |
| (8,993 | ) | |
| (1,233 | ) |
| Net losses on sales of loans(1) | |
| (841 | ) | |
| (1,458 | ) | |
| (200 | ) |
| Other (losses)/gains, net | |
| 16,975 | | |
| (720 | ) | |
| (98 | ) |
| | |
| | | |
| | | |
| | |
| Total non-interest income | |
| 16,635 | | |
| (11,171 | ) | |
| (1,531 | ) |
| | |
| | | |
| | | |
| | |
| Operating expenses | |
| | | |
| | | |
| | |
| Employee compensation and benefits | |
| (49,772 | ) | |
| (57,564 | ) | |
| (7,890 | ) |
| Share-based compensation expenses | |
| (1,444 | ) | |
| - | | |
| - | |
| Taxes and surcharges | |
| (7,739 | ) | |
| (8,500 | ) | |
| (1,165 | ) |
| Operating lease cost | |
| (3,782 | ) | |
| (4,604 | ) | |
| (631 | ) |
| Other expenses | |
| (20,363 | ) | |
| (34,888 | ) | |
| (4,782 | ) |
| | |
| | | |
| | | |
| | |
| Total operating expenses | |
| (83,100 | ) | |
| (105,556 | ) | |
| (14,468 | ) |
| | |
| | | |
| | | |
| | |
| Income before income tax expense | |
| 62,718 | | |
| 67,805 | | |
| 9,293 | |
| Income tax expense | |
| (16,698 | ) | |
| (14,801 | ) | |
| (2,028 | ) |
| | |
| | | |
| | | |
| | |
| Net income | |
| 46,020 | | |
| 53,004 | | |
| 7,265 | |
| | |
| | | |
| | | |
| | |
| Earnings per share | |
| | | |
| | | |
| | |
| Basic | |
| 0.04 | | |
| 0.04 | | |
| 0.01 | |
| Diluted | |
| 0.03 | | |
| 0.04 | | |
| 0.01 | |
| Earnings per ADS (1 ADS equals 20 ordinary shares) | |
| | | |
| | | |
| | |
| Basic | |
| 0.70 | | |
| 0.77 | | |
| 0.11 | |
| Diluted | |
| 0.64 | | |
| 0.71 | | |
| 0.10 | |
| | |
| | | |
| | | |
| | |
| Other comprehensive losses | |
| | | |
| | | |
| | |
| Foreign currency translation adjustment | |
| 9,880 | | |
| 2,022 | | |
| 277 | |
| Comprehensive income | |
| 55,902 | | |
| 55,026 | | |
| 7,542 | |
| Less: net income attributable to non-controlling interests | |
| - | | |
| 8,954 | | |
| 1,227 | |
| Total comprehensive income attributable to ordinary shareholders | |
| 55,902 | | |
| 46,072 | | |
| 6,315 | |
CNFINANCE
HOLDINGS LIMITED
Unaudited
condensed consolidated statements of comprehensive income
(In
thousands, except for earnings per share and earnings per ADS)
| | |
Nine months ended September 30,2023, | |
| | |
2022 | | |
2023 | | |
2023 | |
| | |
RMB | | |
RMB | | |
US$ | |
| Interest and fees income | |
| | |
| | |
| |
| | |
| | |
| | |
| |
| Interest and financing service fees on loans(2) | |
| 1,178,557 | | |
| 1,195,294 | | |
| 163,829 | |
| Interest income charged to sales partners | |
| 89,501 | | |
| 98,678 | | |
| 13,525 | |
| Interest on deposits with banks | |
| 8,756 | | |
| 15,463 | | |
| 2,119 | |
| | |
| | | |
| | | |
| | |
| Total interest and fees income | |
| 1,276,814 | | |
| 1,309,435 | | |
| 179,473 | |
| | |
| | | |
| | | |
| | |
| Interest expenses on interest-bearing borrowings | |
| (583,589 | ) | |
| (535,900 | ) | |
| (73,451 | ) |
| | |
| | | |
| | | |
| | |
| Total interest and fees expenses | |
| (583,589 | ) | |
| (535,900 | ) | |
| (73,451 | ) |
| | |
| | | |
| | | |
| | |
| Net interest and fees income | |
| 693,225 | | |
| 773,535 | | |
| 106,022 | |
| | |
| | | |
| | | |
| | |
| Net revenue under the commercial bank partnership model(2) | |
| 1,268 | | |
| 77,682 | | |
| 10,647 | |
| Collaboration cost for sales partners | |
| (241,163 | ) | |
| (252,478 | ) | |
| (34,605 | ) |
| | |
| | | |
| | | |
| | |
| Net interest and fees income after collaboration cost | |
| 453,330 | | |
| 598,739 | | |
| 82,064 | |
| | |
| | | |
| | | |
| | |
| Provision for credit losses (1) | |
| (95,423 | ) | |
| (141,136 | ) | |
| (19,344 | ) |
| | |
| | | |
| | | |
| | |
| Net interest and fees income after collaboration cost and provision for credit losses | |
| 357,907 | | |
| 457,603 | | |
| 62,720 | |
| | |
| | | |
| | | |
| | |
| Realized gains on sales of investments, net | |
| 16,934 | | |
| 6,724 | | |
| 922 | |
| Net losses on sales of loans(1) | |
| (43,211 | ) | |
| (5,621 | ) | |
| (770 | ) |
| Other gains, net | |
| 65,321 | | |
| 15,990 | | |
| 2,191 | |
| | |
| | | |
| | | |
| | |
| Total non-interest income | |
| 39,044 | | |
| 17,093 | | |
| 2,343 | |
| | |
| | | |
| | | |
| | |
| Operating expenses | |
| | | |
| | | |
| | |
| Employee compensation and benefits | |
| (141,422 | ) | |
| (152,526 | ) | |
| (20,905 | ) |
| Share-based compensation expenses | |
| (4,331 | ) | |
| - | | |
| - | |
| Taxes and surcharges | |
| (24,823 | ) | |
| (24,935 | ) | |
| (3,418 | ) |
| Operating lease cost | |
| (10,765 | ) | |
| (12,435 | ) | |
| (1,704 | ) |
| Other expenses | |
| (73,029 | ) | |
| (94,657 | ) | |
| (12,974 | ) |
| | |
| | | |
| | | |
| | |
| Total operating expenses | |
| (254,370 | ) | |
| (284,553 | ) | |
| (39,001 | ) |
| | |
| | | |
| | | |
| | |
| Income before income tax expense | |
| 142,581 | | |
| 190,143 | | |
| 26,062 | |
| Income tax expense | |
| (35,367 | ) | |
| (44,022 | ) | |
| (6,034 | ) |
| | |
| | | |
| | | |
| | |
| Net income | |
| 107,214 | | |
| 146,121 | | |
| 20,028 | |
| | |
| | | |
| | | |
| | |
| Earnings per share | |
| | | |
| | | |
| | |
| Basic | |
| 0.08 | | |
| 0.10 | | |
| 0.01 | |
| Diluted | |
| 0.07 | | |
| 0.10 | | |
| 0.01 | |
| Earnings per ADS (1 ADS equals 20 ordinary shares) | |
| | | |
| | | |
| | |
| Basic | |
| 1.59 | | |
| 2.11 | | |
| 0.29 | |
| Diluted | |
| 1.45 | | |
| 2.00 | | |
| 0.27 | |
| | |
| | | |
| | | |
| | |
| Other comprehensive losses | |
| | | |
| | | |
| | |
| Foreign currency translation adjustment | |
| 18,748 | | |
| 9,400 | | |
| 1,288 | |
| Comprehensive income | |
| 125,962 | | |
| 155,521 | | |
| 21,316 | |
| Less: net income attributable to non-controlling interests | |
| - | | |
| 17,891 | | |
| 2,452 | |
| Total comprehensive income attributable to ordinary shareholders | |
| 125,962 | | |
| 137,630 | | |
| 18,864 | |
| (1) | In
2022, the majority of sales partners chose to fulfill their guaranteed obligations by making
instalment payments. When sales partners sign the creditor’s rights transfer agreement,
the loans to be transferred will be recognized as “held-for-sale loans (HFS)”,
and HFS would be measured at the lower of the cost and fair value. In 2022, the Company reassessed
the fair value of HFS, such reassessment had led to overstatement in net gains/(losses)
on sales of loans as well as understatement in provision for credit losses, which had no
impact on net income in the three months ended September 30, 2022 and the nine months ended
September 30, 2022. |
| (2) | To
provide more relevant information, the line items of Interest income charged to sales
partners and Net revenue under the commercial bank partnership model, which were
included in Interest and financing service fees on loans in the three months ended
September 30, 2022 and the nine months ended September 30, 2022 have been shown in separate
items. |
8
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