GUANGZHOU, China, March 28,
2024 /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 fourth
quarter and fiscal year ended December 31,
2023.
Fourth Quarter 2023 Operational and Financial
Highlights
- Total outstanding loan principal[1] was RMB16.0 billion (US$2.2
billion) as of December 31,
2023, representing an increase of 17.6% from RMB13.6 billion as of December 31, 2022.
- Net interest and fees income were RMB257.9 million (US$36.4
million) in the fourth quarter of 2023, representing an
increase of 1.8% from RMB253.3
million in the same period of 2022.
- Net income was RMB18.6 million
(US$2.6 million) in the fourth
quarter of 2023, representing a decrease of 33.6% from RMB28.0 million in the same period of 2022.
- Basic and diluted earnings per ADS were RMB0.27 (US$0.04)
and RMB0.26 (US$0.04), respectively, in the fourth quarter of
2023, compared to RMB0.41 and
RMB0.37, respectively, in the same
period of 2022.
Fiscal Year 2023 Operational and Financial Highlights
- Total loan origination volume[2] was RMB17.3 billion (US$2.4
billion) during the fiscal year of 2023, representing an
increase of 17.7% from RMB14.7
billion in 2022.
- Total number of active borrowers[3] was 26,005 as of
December 31, 2023, representing an
increase of 1.6% from 25,600 as of December
31, 2022.
- Total interest and fees income were RMB1,754.6 million (US$247.1 million) for the fiscal year of 2023,
representing an increase of 1.3% from RMB1,731.4 million in 2022.
- Net income was RMB164.5 million
(US$23.2 million) for the fiscal year
of 2023, representing an increase of 21.5% from RMB135.4 million in 2022.
- Basic and diluted earnings per ADS were RMB2.40 (US$0.34)
and RMB2.28 (US$0.32), respectively, in the fiscal year of
2023, as compared to RMB1.97 and
RMB1.77, respectively, in 2022.
"The year 2023 is another important year in the history of
CNFinance. As China's real estate
market continued to fluctuate, we were still able to deliver a
solid result at the year end. We concluded the year facilitating
loans of RMB17.3 billion,
representing a year-on-year growth of 17.7%. Our net income for
2023 also increased by 21.5% year-on-year to RMB164.5 million. In 2023, we focused on
achieving "high-quality development". We continuously refined
policy of repurchase instalment granted to sales partners, which
has helped ease their liquidity pressure and grow their business.
In order to improve overall asset quality, we focused on growing
business in China's core areas of
core cities. In 2023, over 90% of our loans were facilitated in
Tier 1 and Tier 2 cities. Besides, we also managed to dispose
historically non-performing loans. With those efforts, the
delinquency ratio as of the end of 2023 has decreased as compared
to that as of the end of 2022.
In the year of 2024, to maintain our momentum of growth given
the current market condition, we will make innovation a more
important part of our business. Designing and promoting more
products to cover more customers will remain an important part of
our major tasks. We will also keep investing in technology to
continuously refine the overall loan decisioning process, therefore
cut expenses and increase our margin." Commented Mr. Zhai Bin,
Chairman and CEO of CNFinance.
|
[1] Refers
to the total amount of loans outstanding for loans CNFinance
originated under the trust lending model and commercial bank
partnership model at the end of the relevant period.
|
|
[2] Refers
to the total amount of loans CNFinance originated under the trust
lending model and commercial bank partnership model during the
relevant period.
|
|
[3] Refers
to borrowers with outstanding loan principal of home equity loans
originated under the trust lending model and loans recommended to
commercial banks under the commercial bank partnership model as at
the end of a specific period.
|
Fourth Quarter 2023 Financial Results
Total interest and fees income for the fourth quarter of
2023 was RMB445.1 million
(US$62.8 million) as compared to
RMB454.5 million for the same period
of 2022.
Interest and financing service fees on loans was
RMB405.1million (US$57.1 million) for the fourth quarter of 2023,
as compared to RMB417.7 million for
the same period of 2022, primarily attributable to the decrease of
weighted average interest rate of loans outstanding for the fourth
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, increased by 10.5% to RMB35.9 million (US$5.1
million) for the fourth quarter of 2023 from RMB32.5 million in the same period of 2022,
primarily attributable to an increase in the delinquent loans that
were repurchased by the sales partners in installments.
Interest on deposits with banks decreased by 4.7% to
RMB4.1 million (US$0.6 million) for the fourth quarter of 2023 as
compared to RMB4.3 million for the
same period of 2022.
Total interest and fees expenses decreased by 7.0% to
RMB187.2 million (US$26.4 million) for the fourth quarter of 2023
as compared to RMB201.2 million for
the same period of 2022, primarily due to the lower funding cost of
trust company partners.
Net interest and fees income increased by 1.8% to
RMB257.9 million (US$36.4 million) for the fourth quarter of 2023
as compared to RMB253.3 million for
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 RMB10.3 million (US$1.5 million) for the fourth quarter of 2023 as
compared to RMB56.3 million in the
same period of 2022, the decrease was primarily due to the decrease
of loans recommended to commercial banks in the fourth quarter of
2023 as compared to the same period of 2022.
Collaboration cost for sales partners representing sales
incentives paid to sales partners increased to RMB91.0 million (US$12.8
million) for the fourth quarter of 2023 from RMB79.7 million in the same period of 2022,
primarily attributable to an increase of daily average outstanding
loan principal under the trust lending model during the fourth
quarter of 2023 as compared to the same period of 2022, as well as
the involvement of sales partners in the commercial bank
partnership model since the beginning of 2023.
Net interest and fees income after collaboration cost was
RMB177.2 million (US$25.1 million) for the fourth quarter of 2023,
compared to RMB229.9 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 was
RMB42.1 million (US$5.9 million) for the fourth quarter of 2023 as
compared to RMB142.7 million in the
same period of 2022, primarily attributable to the lower
delinquency ratio. Besides, in the fourth 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 during the first half of 2023 were able
to recommence their payments, in addition, we started to involve
sales partners under the commercial bank partnership since the
beginning of 2023, which has jointly led to an increase of
guarantee assets and also provided more protection to the
loans.
Realized gains/(losses) on sales of
investments, net representing realized losses from the sales of
investment securities was RMB0.2
million as compared to gains of RMB3.6 million for the same period of 2022.
Net losses on sales of loans was RMB11.6 million (US$1.6
million) for the fourth quarter of 2023 as compared to
RMB1.3 million in the same period of
2022.
Other gains/(losses), net was losses of RMB11.0 million (US$1.5
million) for the fourth quarter of 2023 as compared to gains
of RMB24.6 million in the same period
of 2022.During the fourth quarter of 2023, the balance of CRMPs
forfeited by the sales partners has decreased 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 fourth 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 14.8% to
RMB96.7 million (US$13.6million) for the fourth quarter of 2023,
compared with RMB84.2 million for the
same period of 2022.
Employee compensation and benefits was RMB52.0 million (US$7.3
million) for the fourth quarter of 2023 as compared to
RMB55.6 million in the same period of
2022.
Share-based compensation expenses for the fourth quarter
of 2023 was RMB7.5 million
(US$1.1 million) as compared to
RMB1.4 million in the same period of
2022. In the fourth quarter of 2023, the Board authorized the
Company to postpone the expiration date of the share option plan
adopted on December 31, 2018 (2018
Option) from December 31, 2023 to
December 31, 2024, and the related
incremental compensation cost of RMB7.5
million was recognized on the original expiration date.
Taxes and surcharges decreased by 42.3% to
RMB6.4 million (US$0.9 million) for the
fourth quarter of 2023 from RMB11.1 million for the same period of 2022,
primarily attributable to the decrease 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. The Company lowered the "Service fees charged to trust
plans" in the fourth quarter of 2023 compared to the same period of
2022.
Operating lease cost increased to RMB3.9 million (US$0.5
million) for the fourth quarter of 2023 as compared to
RMB3.2 million for the same period of
2022.
Other expenses increased by 108.5% to RMB26.9 million (US$3.8 million) for the fourth quarter
of 2023 from RMB12.9 million in
the same period of 2022, primarily due to increase
in service fee for third-party post-loan management.
Income tax expense/(benefit) was a tax benefit of
RMB3.0 million (US$0.4 million) for the fourth quarter of 2023,
compared to a tax expense of RMB1.9
million in the same period of 2022.
Net income decreased by 33.6% to RMB18.6 million (US$2.6
million) for the fourth quarter of 2023 from
RMB28.0 million in the same period of
2022.
Basic earnings per ADS and diluted earnings per ADS were
RMB0.27 (US$0.04) and RMB0.26 (US$0.04),
respectively, in the fourth quarter of 2023, compared to
RMB0.41 and RMB0.37, respectively, in the same period of
2022. One ADS represents 20 ordinary shares.
Fiscal Year 2023 Financial Results
Total interest and fees income for fiscal year 2023
increased by 1.3% to RMB1,754.6
million (US$247.1 million) as
compared to RMB1,731.4 million for
the same period of 2022.
Interest and financing service fees on loans increased by
0.3% to RMB1,600.5 million
(US$225.4 million) for the fiscal
year of 2023 as compared to RMB1,596.3
million for the same period of 2022, primarily attributable
to combine effect of increase in the balance of average daily
outstanding loan principal and decrease of weighted average
interest rate of loans outstanding in 2023.
Interest income charged to sales partners, representing
interest charged to sales partners who choose to repurchase default
loans in installments, increased by 10.2% to RMB134.5 million (US$18.9
million) for the fiscal year of 2023 from RMB122.0 million in the same period of 2022,
primarily attributable to an increase in the delinquent loans that
were repurchased by the sales partners in installments.
Interest on deposits with banks increased by 49.6% to
RMB19.6 million (US$2.8 million) for the fiscal year of 2023 as
compared to RMB13.1 million for the
same period of 2022, primarily due to the higher daily average
amount of time deposits during the year.
Total interest and fees expenses decreased by 7.9% to
RMB723.1 million (US$101.8 million) for the fiscal year of 2023 as
compared to RMB784.8 million for the
same period of 2022, primarily due to the lower funding cost of
trust company partners.
Net interest and fees income increased by 9.0% to
RMB1,031.5 million (US$145.3 million) for the fiscal year of 2023 as
compared to RMB946.6 million for 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, increased by 52.6% to RMB87.9
million (US$12.4 million) for
the fiscal year of 2023 from RMB57.6
million in the same period of 2022. The increase was
primarily due to the increase of loans recommended to commercial
banks in 2023 as compared to the same period of 2022.
Collaboration cost for sales partners representing sales
incentives paid to sales partners increased by 7.1% to RMB343.5 million (US$48.4
million) for the fiscal year of 2023 as compared to
RMB320.8 million for the same period
of 2022, primarily attributable to an increase of daily average
outstanding loan principal under the trust lending model in 2023 as
compared to 2022, and also the involvement of sales partners in the
commercial bank partnership model since the beginning of 2023.
Net interest and fees income after collaboration cost was
RMB775.9 million (US$109.3 million) for the fiscal year of 2023
representing an increase of 13.5% as compared to RMB683.4 million for 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 was
RMB183.2 million (US$25.8 million) for the fiscal year of 2023 as
compared to RMB238.1 million in the
same period of 2022, primarily attributable to the lower
delinquency ratio. Besides, in the fiscal year 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 during the first half of 2023 were able
to recommence their payments, in addition, we started to involve
sales partners under the commercial bank partnership since the
beginning of 2023, which has jointly led to an increase of
guarantee assets and also provided more protection to the
loans.
Realized gains on sales of investments, net representing
realized gains from the sales of investment securities was
RMB6.5 million (US$0.9 million) for the fiscal year of 2023, as
compared to gains of RMB20.6 million
for the same period of 2022.
Net losses on sales of loans was RMB17.1 million (US$2.4
million) for the fiscal year of 2023 as compared to
RMB44.6 million in the same period of
2022.
Other gains, net was RMB4.8
million (US$0.8 million) for
the fiscal year of 2023, compared with RMB89.9 million in the same period of 2022.
Starting in the second half of 2023, the balance of CRMPs forfeited
by the sales partners has decreased 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 fourth 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 12.6% to
RMB381.4 million (US$53.7 million) for the fiscal year of 2023 as
compared to RMB338.6 million for the
same period of 2022.
Employee compensation and benefits increased by 3.9% to
RMB204.6 million (US$28.8 million) for the fiscal year of 2023 as
compared to RMB197.0 million for the
same period of 2022, primarily due to an increase in the
performance-based bonuses as a result of an increase in loan
origination volume in 2023.
Share-based compensation expenses increased by 29.3% to
RMB7.5 million (US$1.1 million) for the fiscal year of 2023 as
compared to RMB5.8 million for the
same period of 2022. In the fourth quarter of 2023, the Board
authorized the Company to postpone the expiration date of the share
option plan adopted on December 31,
2018 (2018 Option) from December 31,
2023 to December 31, 2024, and
the related incremental compensation cost of RMB7.5 million was recognized at the original
expiration date.
Taxes and surcharges decreased by 12.8% to RMB31.3 million (US$4.4
million) for the fiscal year of 2023 as compared to
RMB35.9 million for the same period
of 2022. primarily attributable to the decrease 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. The Company lowered the "Service fees charged to trust
plans" in 2023.
Operating lease cost increased by 17.1% to RMB16.4 million (US$2.3
million) for the fiscal year of 2023 as compared to
RMB14.0 million for the same period
of 2022.
Other expenses increased by 41.6% to RMB121.6 million (US$17.1
million) for the fiscal year of 2023 as compared to
RMB85.9 million for the same period
of 2022, primarily due to (a) 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; and (b) increase in service fee
for third-party post-loan management.
Income tax expenses increased by 10.2% to RMB41.0 million (US$5.8
million) for the fiscal year of 2023 as compared to
RMB37.2 million for the same period
of 2022 primarily due to an increase in the amount of taxable
income.
Effective tax rate decreased to 19.95% for the fiscal
year of 2023 from 21.57% in the same period of 2022 since one of
the subsidiaries of the Company enjoys tax incentives for the
fiscal year of 2023.
Net income increased by 21.5% to RMB164.5 million (US$23.2
million) for the fiscal year of 2023 as compared to
RMB135.4 million for the same period
of 2022.
Basic and diluted earnings per ADS were RMB2.40 (US$0.34)
and RMB2.28 (US$0.32), respectively, for the fiscal year of
2023, compared to RMB1.97 and
RMB1.77, respectively, in the same
period of 2022. One ADS represents 20 ordinary shares.
As of December 31, 2023, the
Company held cash and cash equivalents of RMB2.0 billion (US$281.9
million), compared with RMB1.8
billion as of December 31,
2022, including RMB1.5 billion
(US$ 206.8 million) and RMB1.2 billion from structured funds as of
December 31, 2023 and December 31, 2022, respectively, which could only
be used to grant new loans and activities.
The delinquency ratio (excluding loans held for sale) for
loans originated by the Company decreased from 19.2% as of
December 31, 2022 to 15.6% as of
December 31, 2023. The delinquency
ratio for first lien loans (excluding Loans held-for-sale)
decreased from 21.8% as of December 31,
2022 to 17.5% as of December 31,
2023, and the delinquency ratio for second lien loans
(excluding Loans held-for-sale) decreased from 17.6% as of
December 31, 2022 to 14.4% as of
December 31, 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 1.2% as of December 31, 2023. The NPL ratio for first lien
loans (excluding Loans held-for-sale) increased from 1.1% as of
December 31, 2022 to 1.3% as of
December 31, 2023, and the NPL ratio
for second lien loans (excluding Loans held-for-sale) decreased
from 1.2% as of December 31, 2022 to
0.9% as of December 31, 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
December 31, 2023, the Company had
repurchased an aggregate of approximately US$17.0 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
Thursday, March 28, 2024
(8:00 PM Beijing/ Hong Kong Time on
Thursday, March 28, 2024).
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:
|
+852-301-84992
|
|
Passcode:
|
CNFinance
|
A telephone replay of the call will be available after the
conclusion of the conference call until 11:59 PM ET April 4,
2024.
Dial-in numbers for the replay are as follows:
|
International:
|
+1-412-317-0088
|
|
United
States:
|
+1-877-344-7529
|
|
Passcode:
|
8490811
|
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/.
Statement Regarding Preliminary Unaudited Financial
Information
The unaudited financial information set out in this earnings
release is preliminary and subject to potential adjustments.
Adjustments to the condensed consolidated financial statements may
be identified when audit work has been performed for the Company's
year-end audit, which could result in differences from the
preliminary unaudited financial information contained in this
earnings release.
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
RMB7.0999 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 December 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 December 31,
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
|
|
|
December
31,
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
|
1,772,184
|
|
|
|
2,001,602
|
|
|
|
281,920
|
|
|
Loans principal,
interest and financing
service fee receivables
|
|
|
9,456,802
|
|
|
|
9,815,754
|
|
|
|
1,382,520
|
|
|
Allowance for credit
losses
|
|
|
763,996
|
|
|
|
781,795
|
|
|
|
110,113
|
|
|
Net loans principal,
interest and financing
service fee receivables
|
|
|
8,692,806
|
|
|
|
9,033,959
|
|
|
|
1,272,407
|
|
|
Loans
held-for-sale
|
|
|
1,844,438
|
|
|
|
2,471,414
|
|
|
|
348,091
|
|
|
Investment
securities
|
|
|
518,645
|
|
|
|
413,908
|
|
|
|
58,298
|
|
|
Property and
equipment
|
|
|
2,284
|
|
|
|
8,159
|
|
|
|
1,149
|
|
|
Intangible assets and
goodwill
|
|
|
3,488
|
|
|
|
3,015
|
|
|
|
425
|
|
|
Deferred tax
assets
|
|
|
76,905
|
|
|
|
92,225
|
|
|
|
12,990
|
|
|
Deposits
|
|
|
145,093
|
|
|
|
163,114
|
|
|
|
22,974
|
|
|
Right-of-use
assets
|
|
|
29,777
|
|
|
|
27,828
|
|
|
|
3,919
|
|
|
Guaranteed
assets
|
|
|
726,411
|
|
|
|
875,031
|
|
|
|
123,246
|
|
|
Other assets
|
|
|
669,889
|
|
|
|
1,256,946
|
|
|
|
177,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
14,481,920
|
|
|
|
16,347,201
|
|
|
|
2,302,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under agreements to repurchase
|
|
|
112,642
|
|
|
|
686,581
|
|
|
|
96,703
|
|
|
Other borrowings
|
|
|
7,727,559
|
|
|
|
8,221,365
|
|
|
|
1,157,955
|
|
|
Accrued employee
benefits
|
|
|
31,645
|
|
|
|
25,663
|
|
|
|
3,615
|
|
|
Income taxes
payable
|
|
|
186,901
|
|
|
|
181,032
|
|
|
|
25,498
|
|
|
Deferred tax
liabilities
|
|
|
73,752
|
|
|
|
72,579
|
|
|
|
10,223
|
|
|
Lease
liabilities
|
|
|
28,583
|
|
|
|
26,073
|
|
|
|
3,672
|
|
|
Credit risk mitigation
position
|
|
|
1,354,653
|
|
|
|
1,589,184
|
|
|
|
223,832
|
|
|
Other
liabilities
|
|
|
1,028,471
|
|
|
|
1,535,797
|
|
|
|
216,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
10,544,206
|
|
|
|
12,338,274
|
|
|
|
1,737,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2023)
|
|
|
917
|
|
|
|
917
|
|
|
|
129
|
|
|
Treasury
stock
|
|
|
(87,631)
|
|
|
|
(118,323)
|
|
|
|
(16,665)
|
|
|
Additional paid-in
capital
|
|
|
1,024,204
|
|
|
|
1,031,721
|
|
|
|
145,315
|
|
|
Retained
earnings
|
|
|
2,958,716
|
|
|
|
3,103,957
|
|
|
|
437,183
|
|
|
Accumulated other
comprehensive losses
|
|
|
(10,212)
|
|
|
|
(9,345)
|
|
|
|
(1,316)
|
|
|
Non-controlling
interests
|
|
|
51,720
|
|
|
|
-
|
|
|
|
-
|
|
|
Total shareholders'
equity
|
|
|
3,937,714
|
|
|
|
4,008,927
|
|
|
|
564,646
|
|
|
Total liabilities
and shareholders' equity
|
|
|
14,481,920
|
|
|
|
16,347,201
|
|
|
|
2,302,456
|
|
|
CNFINANCE HOLDINGS
LIMITED
|
|
|
Unaudited condensed
consolidated statements of comprehensive income
|
|
|
(In thousands, except
for earnings per share and earnings per ADS)
|
|
|
|
|
|
Fiscal year ended
December 31,
|
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Interest and fees
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing
service fees on loans
|
|
|
1,596,270
|
|
|
|
1,600,471
|
|
|
|
225,422
|
|
|
Interest income charged
to sales partners
|
|
|
122,019
|
|
|
|
134,542
|
|
|
|
18,950
|
|
|
Interest on deposits
with banks
|
|
|
13,064
|
|
|
|
19,582
|
|
|
|
2,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees income
|
|
|
1,731,353
|
|
|
|
1,754,595
|
|
|
|
247,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses on
interest-bearing borrowings
|
|
|
(784,777)
|
|
|
|
(723,081)
|
|
|
|
(101,844)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees expenses
|
|
|
(784,777)
|
|
|
|
(723,081)
|
|
|
|
(101,844)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income
|
|
|
946,576
|
|
|
|
1,031,514
|
|
|
|
145,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue under the
commercial bank partnership model
|
|
|
57,551
|
|
|
|
87,936
|
|
|
|
12,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration cost for
sales partners
|
|
|
(320,827)
|
|
|
|
(343,508)
|
|
|
|
(48,382)
|
|
|
Net interest and
fees income after collaboration cost
|
|
|
683,300
|
|
|
|
775,942
|
|
|
|
109,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
(238,085)
|
|
|
|
(183,191)
|
|
|
|
(25,802)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost and
provision for credit losses
|
|
|
445,215
|
|
|
|
592,751
|
|
|
|
83,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains on sales
of investments, net
|
|
|
20,567
|
|
|
|
6,548
|
|
|
|
922
|
|
|
Net losses on sales of
loans
|
|
|
(44,555)
|
|
|
|
(17,191)
|
|
|
|
(2,421)
|
|
|
Other gains,
net
|
|
|
89,914
|
|
|
|
4,849
|
|
|
|
683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
65,926
|
|
|
|
(5,794)
|
|
|
|
(816)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
|
|
(197,036)
|
|
|
|
(204,573)
|
|
|
|
(28,814)
|
|
|
Share-based
compensation expenses
|
|
|
(5,774)
|
|
|
|
(7,517)
|
|
|
|
(1,059)
|
|
|
Taxes and
surcharges
|
|
|
(35,891)
|
|
|
|
(31,344)
|
|
|
|
(4,415)
|
|
|
Operating lease
cost
|
|
|
(13,967)
|
|
|
|
(16,367)
|
|
|
|
(2,305)
|
|
|
Other
expenses
|
|
|
(85,889)
|
|
|
|
(121,521)
|
|
|
|
(17,116)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
(338,557)
|
|
|
|
(381,322)
|
|
|
|
(53,709)
|
|
|
Income before income
tax expense
|
|
|
172,584
|
|
|
|
205,635
|
|
|
|
28,963
|
|
|
Income tax
expense
|
|
|
(37,233)
|
|
|
|
(41,017)
|
|
|
|
(5,777)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
135,351
|
|
|
|
164,618
|
|
|
|
23,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.10
|
|
|
|
0.12
|
|
|
|
0.02
|
|
|
Diluted
|
|
|
0.09
|
|
|
|
0.11
|
|
|
|
0.02
|
|
|
Earnings per ADS (1 ADS
equals 20 ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1.97
|
|
|
|
2.40
|
|
|
|
0.34
|
|
|
Diluted
|
|
|
1.77
|
|
|
|
2.28
|
|
|
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
15,182
|
|
|
|
867
|
|
|
|
122
|
|
|
Comprehensive
income
|
|
|
150,533
|
|
|
|
165,485
|
|
|
|
23,308
|
|
|
Less: net income
attributable to non-controlling interests
|
|
|
970
|
|
|
|
19,377
|
|
|
|
2,729
|
|
|
Total comprehensive
income attributable to ordinary
shareholders
|
|
|
149,563
|
|
|
|
146,108
|
|
|
|
20,579
|
|
|
CNFINANCE HOLDINGS
LIMITED
|
|
Unaudited condensed
consolidated statements of comprehensive income
|
|
(In thousands, except
for earnings per share and earnings per ADS)
|
|
|
|
Three months ended
December 31,
|
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Interest and fees
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing
service fees on loans
|
|
|
417,712
|
|
|
|
405,177
|
|
|
|
57,068
|
|
|
Interest income charged
to sales partners
|
|
|
32,518
|
|
|
|
35,865
|
|
|
|
5,051
|
|
|
Interest on deposits
with banks
|
|
|
4,308
|
|
|
|
4,119
|
|
|
|
581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees income
|
|
|
454,538
|
|
|
|
445,161
|
|
|
|
62,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses on
interest-bearing borrowings
|
|
|
(201,187)
|
|
|
|
(187,181)
|
|
|
|
(26,364)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees expenses
|
|
|
(201,187)
|
|
|
|
(187,181)
|
|
|
|
(26,364)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income
|
|
|
253,351
|
|
|
|
257,980
|
|
|
|
36,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue under the
commercial bank partnership model
|
|
|
56,283
|
|
|
|
10,254
|
|
|
|
1,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration cost for
sales partners
|
|
|
(79,664)
|
|
|
|
(91,030)
|
|
|
|
(12,821)
|
|
|
Net interest and
fees income after collaboration cost
|
|
|
229,970
|
|
|
|
177,204
|
|
|
|
24,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
(142,662)
|
|
|
|
(42,055)
|
|
|
|
(5,923)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost and
provision for credit losses
|
|
|
87,308
|
|
|
|
135,149
|
|
|
|
19,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains/(losses)
on sales of investments, net
|
|
|
3,633
|
|
|
|
(176)
|
|
|
|
(25)
|
|
|
Net losses on sales of
loans
|
|
|
(1,344)
|
|
|
|
(11,570)
|
|
|
|
(1,630)
|
|
|
Other gains/(losses),
net
|
|
|
24,593
|
|
|
|
(11,142)
|
|
|
|
(1,569)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
26,882
|
|
|
|
(22,888)
|
|
|
|
(3,224)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
|
|
(55,614)
|
|
|
|
(52,047)
|
|
|
|
(7,331)
|
|
|
Share-based
compensation expenses
|
|
|
(1,444)
|
|
|
|
(7,517)
|
|
|
|
(1,059)
|
|
|
Taxes and
surcharges
|
|
|
(11,068)
|
|
|
|
(6,409)
|
|
|
|
(903)
|
|
|
Operating lease
cost
|
|
|
(3,202)
|
|
|
|
(3,932)
|
|
|
|
(554)
|
|
|
Other
expenses
|
|
|
(12,860)
|
|
|
|
(26,864)
|
|
|
|
(3,783)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
(84,188)
|
|
|
|
(96,769)
|
|
|
|
(13,630)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
|
30,002
|
|
|
|
15,492
|
|
|
|
2,182
|
|
|
Income tax
expense/(benefit)
|
|
|
(1,866)
|
|
|
|
3,005
|
|
|
|
423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
28,136
|
|
|
|
18,497
|
|
|
|
2,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.02
|
|
|
|
0.01
|
|
|
|
0.00
|
|
|
Diluted
|
|
|
0.02
|
|
|
|
0.01
|
|
|
|
0.00
|
|
|
Earnings per ADS (1 ADS
equals 20 ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.41
|
|
|
|
0.27
|
|
|
|
0.04
|
|
|
Diluted
|
|
|
0.37
|
|
|
|
0.26
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(3,566)
|
|
|
|
(8,533)
|
|
|
|
(1,202)
|
|
|
Comprehensive
income
|
|
|
24,570
|
|
|
|
9,964
|
|
|
|
1,403
|
|
|
Less: net income
attributable to non-controlling interests
|
|
|
970
|
|
|
|
1,486
|
|
|
|
209
|
|
|
Total comprehensive
income attributable to ordinary
shareholders
|
|
|
23,600
|
|
|
|
8,478
|
|
|
|
1,194
|
|
View original
content:https://www.prnewswire.com/news-releases/cnfinance-announces-fourth-quarter-and-fiscal-year-2023-unaudited-financial-results-302102383.html
SOURCE CNFinance Holdings Limited
