GUANGZHOU, China, Aug. 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 second
quarter ended June 30, 2023 and the
first half of 2023.
Second Quarter 2023 Operational and Financial
Highlights
- Total loan origination volume[1] was RMB4.5 billion (US$626.8
million) in the second quarter of 2023, representing an
increase of 45.2% from RMB3.1 billion
in the same period of 2022.
- Total number of active borrowers[2] was 25,657
during the second quarter of 2023, representing an increase of
18.5% from 21,649 in the same period of 2022.
- Total number of transactions[3] was 6,269 during the
second quarter of 2023, representing an increase of 8.6% from 5,770
in the same period of 2022.
- Total interest and fees income was RMB431.3 million (US$59.5
million) in the second quarter of 2023, representing an
increase of 5.2% from RMB409.9
million in the same period of 2022.
- Net income was RMB43.8 million
(US$6.0 million) in the second
quarter of 2023, representing an increase of 142.0% from
RMB18.1 million in the same period of
2022.
- Basic earnings per ADS and diluted earnings per ADS were
RMB0.64 (US$0.09) and RMB0.57 (US$0.08),
respectively, in the second quarter of 2023, compared to
RMB0.27 and RMB0.24, respectively, in the same period of
2022.
First Half of 2023 Operational and Financial
Highlights
- Total loan origination volume[1] was RMB8.0 billion (US$1.1
billion) in the first half of 2023, representing an increase
of 42.9% from RMB5.6 billion in the
same period of 2022.
- Total number of transactions[3] was 11,812
during the first half of 2023, representing an increase of 16.3%
from 10,156 in the same period of 2022.
- Total interest and fees income was RMB884.5 million (US$122.0
million) in the first half of 2023, representing an increase
of 6.9% from RMB827.1 million in the
same period of 2022.
- Net income was RMB93.1 million
(US$12.8 million) in the first half
of 2023, representing an increase of 52.1% from RMB61.2 million in the same period of 2022.
- Basic earnings per ADS and diluted earnings per ADS were
RMB1.36 (US$0.19) and RMB1.22 (US$0.17),
respectively, in the first half of 2023, compared to RMB0.89 and RMB0.80
respectively, in the same period of 2022.
"In the second quarter of 2023, we have continued promoting
high-quality development of our services by coordinating growth of
scale and, asset quality, while ensuring our general compliance
with applicable laws and regulations. During such quarter, we
originated loans of RMB4.5 billion in
total. 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 second quarter of 2023. In the second
quarter of 2023, we continued to refine our credit risk control
mechanism by analyzing historical data and adding more influential
factors into the model of collateral evaluation and credit
decisions. As a result of constantly improving credit risk control
mechanism, our delinquency ratio (excluding loans held-for-sale)
has decreased.
Going forward, as the recovery of China's economy has slowed down, our task
remains to achieve 'high-quality development', which requires us to
expand our business and manage the overall risk at the same time.
To achieve such goal, we will have to keep designing new products
to meet the needs of a broader range of customers and also
investing in technology to empower the full cycle of our business."
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.
|
|
[3] Refers to the total number of
loans CNFinance originated under the trust lending model and loans
recommended to commercial banks during the relevant
period.
|
Second Quarter 2023 Financial Results
Total interest and fees income increased by 5.2% to
RMB431.3 million (US$59.5 million) for the second quarter of 2023
from RMB409.9 million in the same
period of 2022.
Interest and financing service fees on loans increased by
5.6% to RMB395.9 million
(US$54.6 million) for the second
quarter of 2023 from RMB374.8 million
in the same period of 2022, primarily attributable to the increase
of average daily outstanding loan principal in the second quarter
of 2023 as compared to the same period of 2022.
Interest income charged to sales partners, representing
fee charged to sales partners who choose to repurchase default
loans in installments, decreased by 12.6% to RMB28.5 million (US$3.9
million) for the second quarter of 2023 from RMB32.6 million in the same period of 2022,
primarily due to the decrease of default loans that were
repurchased by sales partners in installments during the second
quarter of 2023.
Interest on deposits with banks increased by 176.0% to
RMB6.9 million (US$1.0 million) for the second quarter of 2023
from RMB2.5 million in the same
period of 2022, primarily due to increased average daily balance of
time deposits.
Total interest and fees expenses decreased by 3.0% to
RMB181.7 million (US$25.1 million) for the second quarter of 2023,
compared to RMB187.3 million in the
same period of 2022, primarily due to lower funding cost from trust
companies.
Net interest and fees income was RMB249.6 million (US$34.4
million) for the second quarter of 2023, representing an
increase of 12.1% from RMB222.6 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 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 RMB28.6 million
(US$3.9 million) for the second
quarter of 2023 as compared to RMB0.7
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 RMB4.5 billion as of June 30, 2023 as compared to RMB0.3 billion as of June
30, 2022.
Collaboration cost for sales partners was RMB82.6 million (US$11.4
million) for the second quarter of 2023 as compared to
RMB76.6 million in the same period of
2022, primarily due to the increase of loans recommended by sales
partners under the commercial bank partnership.
Net interest and fees income after collaboration cost was
RMB195.6 million (US$27.0 million) for the second quarter of 2023,
representing an increase of 33.3% from RMB146.7 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 25.7% to
RMB50.8 million (US$7.0 million) for the second quarter of 2023
from RMB68.4 million in the same
period of 2022, primarily due to the decrease in outstanding loan
principal of delinquent loans resulting from our constantly
improving credit risk control mechanism.
Realized gains on sales of investments, net representing
realized gains from the sales of investment securities, was
RMB11.8 million (US$1.6 million), as compared to RMB8.1 million for the same period of 2022. The
increase was primarily due to effective funds management.
Net losses on sales of loans was RMB3.3 million (US$0.5
million) for the second quarter of 2023 as compared to
RMB3.4 million in the same period of
2022.
Other gains, net decreased by 97.3% to RMB0.8 million (US$0.1
million) for the second quarter of 2023 from RMB29.8 million in the same period of 2022,
primarily due to the decrease of Credit Risk Mitigation Positions
forfeited by the sales partners as a result of our refined
management on sales partners.
Total operating expenses increased by 8.0% to
RMB98.7 million (US$13.6 million) for the second quarter of 2023,
compared with RMB91.4 million in the
same period of 2022.
Employee compensation and benefits was RMB50.9 million (US$7.0
million) for the second quarter of 2023 as compared to
RMB48.6 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 second quarter of 2023.
Share-based compensation expenses for the second 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 decreased by 14.4% to RMB7.7 million (US$1.1
million) for the second quarter of 2023 from RMB9.0 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. "Service fees charged to trust plans" decreased in the
second quarter of 2023 compared to the same period of 2022 due to
the decrease of scale of some trust plans.
Operating lease cost increased to RMB3.7 million (US$0.5
million) for the second quarter of 2023 as compared to
RMB3.5 million for the same period of
2022.
Other expenses increased by 26.0% to RMB36.4 million (US$5.0
million) for the second quarter of 2023 from RMB28.9 million in the same period of 2022,
primarily due to the increase in fees paid to local channels
for introducing sales partners to the Company.
Income tax expense increased by 251.5% to RMB11.6 million (US$1.6
million) for the second quarter of 2023 from RMB3.3 million in the same period of 2022, due to
the increase in the amount of taxable income.
Effective tax rate increased to 21.0% for the second
quarter of 2023 from 15.3% in the same period of 2022, primarily
due to the fact that one of the subsidiaries turned from losses to
profit-making incomes during the second quarter in 2022, resulting
in reversal of the full valuation allowance of the deferred tax
asset. Such reversal of allowance did not occur in the second
quarter of 2023.
Net income increased by 142.0% to RMB43.8 million (US$6.0
million) for the second quarter of 2023 from RMB18.1 million in the same period of 2022.
Basic earnings per ADS and diluted earnings per ADS were
RMB0.64 (US$0.09) and RMB0.57(US$0.08),
respectively, in the second quarter of 2023, compared to
RMB0.27 and RMB0.24, respectively, in the same period of
2022. One ADS represents 20 ordinary shares.
First Half of 2023 Financial Results
Total interest and fees income increased by 6.9% to
RMB884.5 million (US$122.0 million) for the first half of 2023 from
RMB827.1 million in the same period
of 2022.
Interest and financing service fees on loans increased by
5.4% to RMB807.4 million
(US$111.4 million) for the first half
of 2023 from RMB765.9 million in the
same period of 2022, primarily attributable to the increase of
average daily outstanding loan principal in the first half of 2023
as compared to the same period of 2022.
Interest income charged to sales partners, representing
fee charged to sales partners who choose to repurchase default
loans in installments, increased by 17.9% to RMB66.0 million (US$9.1
million) for the first half of 2023 from RMB56.0 million in the same period of 2022,
primarily due to the fact that the Company allowed more sales
partners to repurchase the default loans in installments to help
sales partners ease their pressure on cashflow in the first half of
2023.
Interest on deposits with banks increased by 113.5% to
RMB11.1 million (US$1.5 million) for the first half of 2023 from
RMB5.2 million in the same period of
2022, primarily due to increased average daily balance of time
deposits.
Total interest and fees expenses decreased by 5.6% to
RMB366.3 million (US$50.5 million) in the first half of 2023 from
RMB388.2 million in the same period
in 2022, primarily due to lower funding cost from trust companies
in the first half of 2023.
Net interest and fees income was RMB518.2 million (US$71.5
million) for the first half of 2023, representing an
increase of 18.1% from RMB438.9 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 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 RMB50.1 million
(US$6.9 million) for the first half
of 2023 as compared to RMB0.9 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 RMB4.5
billion as of June 30, 2023 as
compared to RMB0.3 billion as of
June 30, 2022.
Collaboration cost for sales partners increased by 6.0%
to RMB165.6 million (US$22.8 million) for the first half of 2023 from
RMB156.2 million in the same period
of 2022, primarily due to the increase of loans recommended by
sales partners under the commercial bank partnership.
Net interest and fees income after collaboration
cost increased by 42.0% to RMB402.7million (US$55.5
million) for the first half of 2023 from RMB283.6 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, increased by 136.1%
to RMB129.6 million (US$17.9
million) for the first half of 2023 from RMB54.9 million in the same period in 2022. The
increase was the combined effect of (a) the increase in expected
credit losses of guarantee under the commercial bank partnership
model as the origination volume grew and scaled rapidly in the
first half of 2023; (b) a reversal of allowance in the first
quarter of 2022 due to the fact that the Company disposed the
remaining loans under the traditional facilitation model to third
parties and the allowance of such loans was reversed.
Realized gains on sales of investments, net representing
realized gains from the sales of investment securities, was
RMB15.7 million (US$2.2 million), as compared to RMB16.4 million for the same period of 2022.
Net losses on sales of loans was RMB4.2 million (US$0.6
million) for the first half of 2023 as compared to
RMB42.4 million in the same period of
2022. The net losses in the first half of 2022 was primarily
attributable to the fact that the Company disposed the remaining
loans under the traditional facilitation model which were all
facilitated prior to 2019 to third parties in bulk during the first
quarter of 2022.
Other gains, net decreased by 65.4% to RMB16.7 million (US$2.3million) for the first half of 2023 from
RMB48.3 million in the same period of
2022, primarily due to the decrease of Credit Risk Mitigation
Positions forfeited by the sales partners as a result of our
refined management on sales partners.
Total operating expenses increased by 4.6% to
RMB179.0 million (US$24.7 million) in the first half of 2023,
compared with RMB171.2 million in the
same period of 2022.
Employee compensation and benefits increased by 3.7% to
RMB95.0 million (US$13.1 million) in the first half of 2023 from
RMB91.6 million in the same period in
2022.
Share-based compensation expenses in the first half of
2023 was nil as compared to RMB2.9
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 decreased by 4.1% to
RMB16.4 million (US$2.3 million) in the first half of 2023 from
RMB17.1 million in 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. "Service fees charged to trust plans" decreased in the
first half of 2023 compared to the same period of 2022 due to the
decrease of scale of some trust plans.
Operating lease cost was RMB7.8
million (US$1.1 million) for
the first half of 2023 as compared to RMB7.0
million for the same period of 2022.
Other expenses increased by 13.7% to RMB59.8 million (US$8.2
million) in the first half of 2023 from RMB52.6 million in the same period of 2022,
primarily due to the increase in fees paid to local channels for
introducing sales partners to the Company.
Income tax expense was RMB29.2
million (US$4.0 million) in
the first half of 2023, as compared to RMB18.6 million in the same period of 2022,
primarily due to the increase in taxable income in the first half
of 2023 as compared to the same period of 2022.
Effective tax rate was 23.9% as compared to 23.4% in
the same period of 2022.
Net income increased by 52.1% to RMB93.1 million (US$12.8
million) in the first half of 2023, from RMB61.2 million in the same period of 2022.
Basic earnings per ADS and diluted earnings per ADS were
RMB1.36 (US$0.19) and RMB1.22 (US$0.17),
respectively, in the first half of 2023, compared to RMB0.89 and RMB0.80
respectively, in the same period of 2022. One ADS represents 20
ordinary shares.
As of June 30, 2023, the Company
had cash and cash equivalents and restricted cash of
RMB1.9 billion (US$0.3 billion), compared with RMB1.8 billion as of December 31, 2022, including RMB1.3 billion (US$0.2
billion) and RMB1.2 billion
from structured funds as of June 30,
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 18.3% as of
December 31, 2022 to 15.2% as of
June 30, 2023. The delinquency ratio
for first lien loans (excluding Loans held-for-sale) decreased from
21.8% as of December 31, 2022 to
17.7% as of June 30, 2023, and the
delinquency ratio for second lien loans (excluding Loans
held-for-sale) increased from 13.8% as of December 31, 2022 to 14.4% as of June 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 1.4% as of June 30, 2023. The NPL ratio for first lien loans
(excluding Loans held-for-sale) increased from 1.1% as of
December 31, 2022 to 1.8% as of
June 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 1.4%
as of June 30, 2023.
Recent Development
US$20 Million Share
Repurchase Program
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
June 30, 2023, the Company had
repurchased an aggregate of approximately US$14.8 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
Tuesday, August 29, 2023
(8:00 PM Beijing/ Hong Kong Time on
the same day).
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 September
5, 2023.
Dial-in numbers for the replay are as follows:
|
International:
|
+1-412-317-0088
|
|
United
States:
|
+1-877-344-7529
|
|
Passcode:
|
5588757
|
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
RMB7.2513 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 June 30, 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 June 30, 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 law, 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
|
|
|
June
30,
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
|
1,772,184
|
|
|
|
1,880,754
|
|
|
|
259,368
|
|
|
Loans principal,
interest and financing service fee receivables
|
|
|
9,456,802
|
|
|
|
8,149,245
|
|
|
|
1,123,832
|
|
|
Allowance for credit
losses
|
|
|
763,996
|
|
|
|
680,016
|
|
|
|
93,778
|
|
|
Net loans principal,
interest and financing service fee receivables
|
|
|
8,692,806
|
|
|
|
7,469,229
|
|
|
|
1,030,054
|
|
|
Loans
held-for-sale
|
|
|
1,844,438
|
|
|
|
2,101,460
|
|
|
|
289,805
|
|
|
Investment
securities
|
|
|
518,645
|
|
|
|
999,129
|
|
|
|
137,786
|
|
|
Property and
equipment
|
|
|
2,284
|
|
|
|
2,920
|
|
|
|
403
|
|
|
Intangible assets and
goodwill
|
|
|
3,488
|
|
|
|
3,233
|
|
|
|
446
|
|
|
Deferred tax
assets
|
|
|
76,905
|
|
|
|
108,811
|
|
|
|
15,005
|
|
|
Deposits
|
|
|
145,093
|
|
|
|
154,311
|
|
|
|
21,280
|
|
|
Right-of-use
assets
|
|
|
29,777
|
|
|
|
32,051
|
|
|
|
4,420
|
|
|
Guaranteed
assets
|
|
|
726,411
|
|
|
|
715,707
|
|
|
|
98,701
|
|
|
Other assets
|
|
|
669,889
|
|
|
|
1,007,093
|
|
|
|
138,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
14,481,920
|
|
|
|
14,474,698
|
|
|
|
1,996,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under agreements to repurchase
|
|
|
112,642
|
|
|
|
472,143
|
|
|
|
65,111
|
|
|
Other borrowings
|
|
|
7,727,559
|
|
|
|
6,806,168
|
|
|
|
938,614
|
|
|
Accrued employee
benefits
|
|
|
31,645
|
|
|
|
20,273
|
|
|
|
2,796
|
|
|
Income taxes
payable
|
|
|
186,901
|
|
|
|
215,392
|
|
|
|
29,704
|
|
|
Deferred tax
liabilities
|
|
|
73,752
|
|
|
|
71,791
|
|
|
|
9,900
|
|
|
Lease
liabilities
|
|
|
28,583
|
|
|
|
30,810
|
|
|
|
4,249
|
|
|
Credit risk mitigation
position
|
|
|
1,354,653
|
|
|
|
1,331,863
|
|
|
|
183,672
|
|
|
Other
liabilities
|
|
|
1,028,471
|
|
|
|
1,451,390
|
|
|
|
200,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
10,544,206
|
|
|
|
10,399,830
|
|
|
|
1,434,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30,
2023)
|
|
|
917
|
|
|
|
917
|
|
|
|
126
|
|
|
Treasury
stock
|
|
|
(87,631)
|
|
|
|
(98,130)
|
|
|
|
(13,533)
|
|
|
Additional paid-in
capital
|
|
|
1,024,204
|
|
|
|
1,024,204
|
|
|
|
141,244
|
|
|
Retained
earnings
|
|
|
2,958,716
|
|
|
|
3,042,896
|
|
|
|
419,635
|
|
|
Accumulated other
comprehensive losses
|
|
|
(10,212)
|
|
|
|
(2,834)
|
|
|
|
(390)
|
|
|
Non-controlling
interests
|
|
|
51,720
|
|
|
|
107,815
|
|
|
|
14,868
|
|
|
Total shareholders'
equity
|
|
|
3,937,714
|
|
|
|
4,074,868
|
|
|
|
561,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
|
14,481,920
|
|
|
|
14,474,698
|
|
|
|
1,996,152
|
|
|
CNFINANCE HOLDINGS
LIMITED
|
|
Unaudited condensed
consolidated statements of comprehensive income
|
|
(In thousands, except
for earnings per share and earnings per ADS)
|
|
|
|
Three months ended
June 30,2023
|
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Interest and fees
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing
service fees on loans(2)
|
|
|
374,783
|
|
|
|
395,923
|
|
|
|
54,600
|
|
|
Interest income charged
to sales partners
|
|
|
32,557
|
|
|
|
28,517
|
|
|
|
3,933
|
|
|
Interest on deposits
with banks
|
|
|
2,492
|
|
|
|
6,885
|
|
|
|
949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees income
|
|
|
409,832
|
|
|
|
431,325
|
|
|
|
59,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses on
interest-bearing borrowings
|
|
|
(187,304)
|
|
|
|
(181,687)
|
|
|
|
(25,056)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees expenses
|
|
|
(187,304)
|
|
|
|
(181,687)
|
|
|
|
(25,056)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income
|
|
|
222,528
|
|
|
|
249,638
|
|
|
|
34,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue under the
commercial bank partnership model(2)
|
|
|
741
|
|
|
|
28,588
|
|
|
|
3,942
|
|
|
Collaboration cost for
sales partners
|
|
|
(76,599)
|
|
|
|
(82,576)
|
|
|
|
(11,387)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost
|
|
|
146,670
|
|
|
|
195,650
|
|
|
|
26,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
credit losses (1)
|
|
|
(68,416)
|
|
|
|
(50,820)
|
|
|
|
(7,008)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost and
provision for credit losses
|
|
|
78,254
|
|
|
|
144,830
|
|
|
|
19,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains on sales
of investments, net
|
|
|
8,066
|
|
|
|
11,827
|
|
|
|
1,631
|
|
|
Net losses on sales of
loans(1)
|
|
|
(3,440)
|
|
|
|
(3,293)
|
|
|
|
(454)
|
|
|
Other gains,
net
|
|
|
29,892
|
|
|
|
750
|
|
|
|
103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
34,518
|
|
|
|
9,284
|
|
|
|
1,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
|
|
(48,602)
|
|
|
|
(50,932)
|
|
|
|
(7,024)
|
|
|
Share-based
compensation expenses
|
|
|
(1,444)
|
|
|
|
-
|
|
|
|
-
|
|
|
Taxes and
surcharges
|
|
|
(9,036)
|
|
|
|
(7,716)
|
|
|
|
(1,064)
|
|
|
Operating lease
cost
|
|
|
(3,436)
|
|
|
|
(3,675)
|
|
|
|
(507)
|
|
|
Other
expenses
|
|
|
(28,863)
|
|
|
|
(36,379)
|
|
|
|
(5,017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
(91,381)
|
|
|
|
(98,702)
|
|
|
|
(13,612)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
|
21,391
|
|
|
|
55,412
|
|
|
|
7,641
|
|
|
Income tax
expense
|
|
|
(3,276)
|
|
|
|
(11,632)
|
|
|
|
(1,603)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
18,115
|
|
|
|
43,780
|
|
|
|
6,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.004
|
|
|
Diluted
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.004
|
|
|
Earnings per ADS (1 ADS
equals 20 ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.27
|
|
|
|
0.64
|
|
|
|
0.09
|
|
|
Diluted
|
|
|
0.24
|
|
|
|
0.57
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
11,107
|
|
|
|
8,884
|
|
|
|
1,225
|
|
|
Comprehensive
income
|
|
|
29,222
|
|
|
|
52,664
|
|
|
|
7,263
|
|
|
Less: net income
attributable to non-controlling interests
|
|
|
-
|
|
|
|
6,477
|
|
|
|
893
|
|
|
Total comprehensive
income attributable to ordinary
shareholders
|
|
|
29,222
|
|
|
|
46,187
|
|
|
|
6,370
|
|
|
CNFINANCE HOLDINGS
LIMITED
|
|
Unaudited condensed
consolidated statements of comprehensive income
|
|
(In thousands, except
for earnings per share and earnings per ADS)
|
|
|
|
Six months ended June
30,2023,
|
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Interest and fees
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing
service fees on loans(2)
|
|
|
765,893
|
|
|
|
807,372
|
|
|
|
111,342
|
|
|
Interest income charged
to sales partners
|
|
|
55,985
|
|
|
|
65,967
|
|
|
|
9,097
|
|
|
Interest on deposits
with banks
|
|
|
5,242
|
|
|
|
11,162
|
|
|
|
1,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees income
|
|
|
827,120
|
|
|
|
884,501
|
|
|
|
121,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses on
interest-bearing borrowings
|
|
|
(388,194)
|
|
|
|
(366,286)
|
|
|
|
(50,513)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees expenses
|
|
|
(388,194)
|
|
|
|
(366,286)
|
|
|
|
(50,513)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income
|
|
|
438,926
|
|
|
|
518,215
|
|
|
|
71,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue under the
commercial bank partnership model(2)
|
|
|
863
|
|
|
|
50,059
|
|
|
|
6,903
|
|
|
Collaboration cost for
sales partners
|
|
|
(156,202)
|
|
|
|
(165,583)
|
|
|
|
(22,834)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost
|
|
|
283,587
|
|
|
|
402,691
|
|
|
|
55,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses (1)
|
|
|
(54,863)
|
|
|
|
(129,621)
|
|
|
|
(17,876)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost and
provision for credit losses
|
|
|
228,724
|
|
|
|
273,070
|
|
|
|
37,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains on sales
of investments, net
|
|
|
16,432
|
|
|
|
15,718
|
|
|
|
2,168
|
|
|
Net losses on sales of
loans(1)
|
|
|
(42,370)
|
|
|
|
(4,163)
|
|
|
|
(574)
|
|
|
Other gains,
net
|
|
|
48,346
|
|
|
|
16,710
|
|
|
|
2,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
22,408
|
|
|
|
28,265
|
|
|
|
3,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
|
|
(91,650)
|
|
|
|
(94,962)
|
|
|
|
(13,096)
|
|
|
Share-based
compensation expenses
|
|
|
(2,887)
|
|
|
|
-
|
|
|
|
-
|
|
|
Taxes and
surcharges
|
|
|
(17,083)
|
|
|
|
(16,435)
|
|
|
|
(2,266)
|
|
|
Operating lease
cost
|
|
|
(6,983)
|
|
|
|
(7,832)
|
|
|
|
(1,080)
|
|
|
Other
expenses
|
|
|
(52,666)
|
|
|
|
(59,769)
|
|
|
|
(8,243)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
(171,269)
|
|
|
|
(178,998)
|
|
|
|
(24,685)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
|
79,863
|
|
|
|
122,337
|
|
|
|
16,871
|
|
|
Income tax
expense
|
|
|
(18,669)
|
|
|
|
(29,220)
|
|
|
|
(4,030)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
61,194
|
|
|
|
93,117
|
|
|
|
12,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.04
|
|
|
|
0.07
|
|
|
|
0.010
|
|
|
Diluted
|
|
|
0.04
|
|
|
|
0.06
|
|
|
|
0.008
|
|
|
Earnings per ADS (1 ADS
equals 20 ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.89
|
|
|
|
1.36
|
|
|
|
0.19
|
|
|
Diluted
|
|
|
0.80
|
|
|
|
1.22
|
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
8,867
|
|
|
|
7,378
|
|
|
|
1,017
|
|
|
Comprehensive
income
|
|
|
70,061
|
|
|
|
100,495
|
|
|
|
13,858
|
|
|
Less: net income
attributable to non-controlling interests
|
|
|
-
|
|
|
|
8,937
|
|
|
|
1,232
|
|
|
Total comprehensive
income attributable to ordinary
shareholders
|
|
|
70,061
|
|
|
|
91,558
|
|
|
|
12,626
|
|
|
(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
June 30, 2022 and in the first half
of 2023.
|
|
(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 June
30, 2022 have been shown in separate
items.
|
View original
content:https://www.prnewswire.com/news-releases/cnfinance-announces-second-quarter-and-first-half-of-2023-unaudited-financial-results-301912279.html
SOURCE CNFinance Holdings Limited