CNFinance Announces First Half of 2024 Unaudited Financial Results
First Half of 2024 Operational and Financial Highlights
- Total outstanding loan principal[1] was
RMB16.0 billion (US$2.2 billion ) as ofJune 30, 2024 , representing an increase of 9.6% fromRMB14.6 billion as ofJune 30, 2023 . - Total interest and fees income were
RMB926.5 million (US$127.5 million ) in the first half of 2024, representing an increase of 4.7% fromRMB884.5 million in the same period of 2023. - Net revenue under the commercial bank partnership model was
RMB58.4 million (US$8.0 million ) in the first half of 2024, representing an increase of 16.6% fromRMB50.1 million in the same period of 2023. - Net interest and fees income after collaboration cost increased by 5.3% to
RMB424.0 million (US$58.3 million ) for the first half of 2024 fromRMB402.7 million in the same period of 2023.
"In response to macroeconomic uncertainties, we concentrated on strengthening our business foundation and ensuring asset quality during the first half of 2024. In the first half of 2024, we originated loans in total of
Facing the uncertainty associated with the general economy condition, we will prioritize asset quality and profitability of our business. In order to further improve asset quality, we will optimize our credit assessment models to refine our screening of new applications. We will also strengthen our support to sales partners and foster a collaborative approach to enable more of our sales partners to continue working with us under the principle of "shared risk, shared returns". In order to increase our profit margin, we will work on further reducing financing costs and refine our customer sourcing network. At the same time, we will continue to leverage our product strengths of being "accessible, affordable and efficient," while enhance and diversify our product offerings across various scenarios to sustain growth." Commented Mr.
[1] Refers to the total amount of loans outstanding for loans |
First Half of 2024 Financial Results
Total interest and fees income increased by 4.7% to
Interest and financing service fees on loans increased by 3.3% to
Interest income charged to sales partners, representing fee charged to sales partners who choose to repurchase default loans in installments, increased by 25.9% to
Interest on deposits with banks decreased by 17.0% to
Total interest and fees expenses increased by 9.7% to
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 decreased by 3.9% to
Net interest and fees income after collaboration cost increased by 5.3% 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 by 31.8% to
Realized gains on sales of investments, net representing realized gains from the sales of investment securities, were
Other gains, net were
Total operating expenses increased by 14.4% to
Employee compensation and benefits were
Taxes and surcharges decreased by 26.8% to
Operating lease cost was
Other expenses increased by 62.2% to
Income tax expense was
Effective tax rate was 18.7% in the first half of 2024 as compared to 23.9% in the same period of 2023. The decrease in effective tax rate was mainly due to that one of the Company's subsidiaries was classified as a qualified software enterprise whose revenue is tax-exempted according to the PRC tax regulations.
Net income was
Basic and diluted earnings
per ADS were
As of
The delinquency ratio (excluding loans held for sale) for loans originated by the Company increased from 15.5% as of
The NPL ratio (excluding loans held for sale) for loans originated by the Company was 1.2% as of
Share Repurchase
On
Conference Call
Dial-in numbers for the live conference call are as follows:
International: |
+1-412-902-4272 |
Mainland |
+86-4001-201203 |
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+1-888-346-8982 |
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+852-301-84992 |
Passcode: |
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A telephone replay of the call will be available after the conclusion of the conference call until
Dial-in numbers for the replay are as follows:
International: |
+1-412-317-0088 |
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+1-877-344-7529 |
Passcode: |
6689462 |
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
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
For more information, please contact:
E-mail: ir@cashchina.cn
CNFINANCE HOLDINGS LIMITED |
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Unaudited condensed consolidated balance sheets |
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(In thousands, except for number of shares) |
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202 3 |
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June 3 0 , 202 4 |
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RMB |
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RMB |
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US$ |
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Assets |
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Cash, cash equivalents and restricted cash |
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2,001,602 |
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1,612,140 |
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221,838 |
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Loans principal, interest and financing |
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9,815,754 |
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10,167,752 |
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1,399,129 |
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Allowance for credit losses |
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781,795 |
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755,279 |
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103,930 |
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Net loans principal, interest and financing |
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9,033,959 |
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9,412,473 |
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1,295,199 |
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Loans held-for-sale |
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2,471,414 |
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3,213,653 |
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442,213 |
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Investment securities |
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413,908 |
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320,735 |
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44,135 |
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Property and equipment |
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8,159 |
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190,069 |
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26,154 |
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Intangible assets and goodwill |
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3,015 |
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3,007 |
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414 |
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Deferred tax assets |
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92,225 |
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108,025 |
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14,865 |
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Deposits |
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163,114 |
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174,534 |
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24,017 |
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Right-of-use assets |
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27,828 |
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22,874 |
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3,148 |
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Guaranteed assets |
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875,031 |
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1,003,040 |
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138,023 |
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Other assets |
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1,274,091 |
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1,218,465 |
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167,666 |
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Total assets |
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16,364,346 |
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17,279,015 |
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2,377,672 |
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Liabilities and shareholders' equity |
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Interest-bearing borrowings |
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Borrowings under agreements to |
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686,581 |
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1,210,705 |
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166,599 |
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Other borrowings |
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8,243,615 |
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8,316,767 |
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1,144,425 |
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Accrued employee benefits |
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25,663 |
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16,492 |
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2,269 |
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Income taxes payable |
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181,032 |
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188,850 |
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25,987 |
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Deferred tax liabilities |
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72,579 |
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72,289 |
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9,947 |
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Lease liabilities |
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26,073 |
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21,512 |
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2,960 |
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Credit risk mitigation position |
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1,589,184 |
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1,644,925 |
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226,349 |
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Other liabilities |
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1,530,692 |
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1,748,701 |
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240,630 |
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Total liabilities |
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12,355,419 |
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13,220,241 |
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1,819,166 |
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Ordinary shares ( |
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917 |
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917 |
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126 |
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(118,323) |
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(122,396) |
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(16,842) |
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Additional paid-in capital |
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1,031,721 |
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1,031,721 |
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141,970 |
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Retained earnings |
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3,103,957 |
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3,151,897 |
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433,715 |
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Accumulated other comprehensive losses |
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(9,345) |
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(3,365) |
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(463) |
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Total shareholders' equity |
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4,008,927 |
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4,058,774 |
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558,506 |
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Total liabilities and shareholders' equity |
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16,364,346 |
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17,279,015 |
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2,377,672 |
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Unaudited condensed consolidated statements of comprehensive income |
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(In thousands, except for earnings per share and earnings per ADS) |
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Six months ended |
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2023 |
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2024 |
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2024 |
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RMB |
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RMB |
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US$ |
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Interest and fees income |
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Interest and financing service fees on loans |
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807,372 |
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834,101 |
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114,776 |
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Interest income charged to sales partners |
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65,967 |
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83,089 |
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11,434 |
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Interest on deposits with banks |
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11,162 |
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9,300 |
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1,279 |
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Total interest and fees income |
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884,501 |
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926,490 |
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127,489 |
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Interest expenses on interest-bearing borrowings |
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(366,286) |
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(401,738) |
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(55,281) |
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Total interest and fees expenses |
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(366,286) |
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(401,738) |
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(55,281) |
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Net interest and fees income |
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518,215 |
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524,752 |
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72,208 |
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Net revenue under the commercial bank partnership model |
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50,059 |
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58,390 |
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8,035 |
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Collaboration cost for sales partners |
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(165,583) |
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(159,171) |
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(21,903) |
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Net interest and fees income after collaboration cost |
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402,691 |
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423,971 |
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58,340 |
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Provision for credit losses |
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(129,621) |
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(170,751) |
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(23,496) |
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Net interest and fees income after collaboration cost and |
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273,070 |
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253,220 |
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34,844 |
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Realized gains on sales of investments, net |
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15,718 |
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1,150 |
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|
158 |
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Net losses on sales of loans |
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(4,163) |
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(1,754) |
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(241) |
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Other gains, net |
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16,709 |
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|
11,056 |
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1,521 |
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Total non-interest income |
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28,264 |
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10,452 |
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1,438 |
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Operating expenses |
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Employee compensation and benefits |
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(94,962) |
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(86,926) |
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(11,961) |
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Taxes and surcharges |
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(16,435) |
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(12,023) |
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(1,654) |
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Operating lease cost |
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(7,832) |
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(8,780) |
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(1,208) |
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Other expenses |
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(59,769) |
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(96,954) |
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(13,342) |
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Total operating expenses |
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(178,998) |
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(204,683) |
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(28,165) |
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Income before income tax expense |
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122,336 |
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58,989 |
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|
8,117 |
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Income tax expense |
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(29,221) |
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(11,049) |
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(1,520) |
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Net income |
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93,115 |
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47,940 |
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6,597 |
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Earnings per share |
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Basic |
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0.07 |
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0.04 |
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0.005 |
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Diluted |
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0.06 |
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0.04 |
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0.005 |
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Earnings per ADS (1 ADS equals 20 ordinary shares) |
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Basic |
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1.36 |
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0.70 |
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0.10 |
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Diluted |
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1.22 |
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|
0.70 |
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|
0.10 |
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Other comprehensive Income |
|
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Foreign currency translation adjustment |
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7,378 |
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5,980 |
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|
823 |
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Comprehensive income |
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100,493 |
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53,920 |
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7,420 |
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Less: net income attributable to non-controlling interests |
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8,937 |
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- |
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- |
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Total comprehensive income attributable to ordinary |
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91,556 |
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|
53,920 |
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|
7,420 |
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View original content:https://www.prnewswire.com/news-releases/cnfinance-announces-first-half-of-2024-unaudited-financial-results-302231534.html
SOURCE