CNFinance Announces First Half of 2024 Unaudited Financial Results
CNFinance Holdings (NYSE: CNF), a leading home equity loan provider in China, reported its unaudited financial results for the first half of 2024. Key highlights include:
- Total outstanding loan principal increased 9.6% year-over-year to RMB16.0 billion (US$2.2 billion)
- Total interest and fees income rose 4.7% to RMB926.5 million (US$127.5 million)
- Net revenue under commercial bank partnership model grew 16.6% to RMB58.4 million (US$8.0 million)
- Net income decreased to RMB48.0 million (US$6.6 million) from RMB93.1 million in H1 2023
The company focused on strengthening its business foundation and ensuring asset quality amid macroeconomic uncertainties. While loan originations and interest income increased, higher provision for credit losses impacted profitability. CNFinance aims to prioritize asset quality and profitability going forward by optimizing credit assessment, reducing financing costs, and enhancing product offerings.
CNFinance Holdings (NYSE: CNF), un importante fornitore di prestiti sulla casa in Cina, ha reso noti i suoi risultati finanziari non auditati per il primo semestre del 2024. I punti salienti includono:
- Il capitale totale dei prestiti in essere è aumentato del 9,6% rispetto all'anno precedente, raggiungendo RMB16,0 miliardi (US$2,2 miliardi)
- I ricavi totali da interessi e commissioni sono aumentati del 4,7%, arrivando a RMB926,5 milioni (US$127,5 milioni)
- I ricavi netti sotto il modello di partnership con le banche commerciali sono cresciuti del 16,6%, raggiungendo RMB58,4 milioni (US$8,0 milioni)
- L'utile netto è diminuito a RMB48,0 milioni (US$6,6 milioni) rispetto a RMB93,1 milioni nel primo semestre del 2023
L'azienda si è concentrata sul rafforzamento della propria base aziendale e sulla garanzia della qualità degli attivi in un contesto macroeconomico incerto. Sebbene le origini dei prestiti e i ricavi da interessi siano aumentati, la maggiore accantonamento per perdite su crediti ha influito sulla redditività. CNFinance punta a dare priorità alla qualità degli attivi e alla redditività nel futuro ottimizzando la valutazione del credito, riducendo i costi di finanziamento e migliorando l'offerta di prodotti.
CNFinance Holdings (NYSE: CNF), un proveedor líder de préstamos sobre el capital de la vivienda en China, informó sobre sus resultados financieros no auditados del primer semestre de 2024. Los aspectos destacados incluyen:
- El principal total de préstamos pendientes aumentó un 9.6% en comparación con el año anterior, alcanzando RMB16.0 mil millones (US$2.2 mil millones)
- Los ingresos totales por intereses y comisiones crecieron un 4.7%, llegando a RMB926.5 millones (US$127.5 millones)
- Los ingresos netos bajo el modelo de asociación con bancos comerciales crecieron un 16.6%, alcanzando RMB58.4 millones (US$8.0 millones)
- La renta neta disminuyó a RMB48.0 millones (US$6.6 millones) desde RMB93.1 millones en el primer semestre de 2023
La compañía se ha enfocado en fortalecer su base comercial y asegurar la calidad de los activos en medio de incertidumbres macroeconómicas. Si bien las originaciones de préstamos y los ingresos por intereses aumentaron, una mayor provisión para pérdidas crediticias afectó la rentabilidad. CNFinance tiene como objetivo priorizar la calidad de los activos y la rentabilidad en el futuro, optimizando la evaluación crediticia, reduciendo costos de financiamiento y mejorando su oferta de productos.
CNFinance Holdings (NYSE: CNF)는 중국의 주요 주택 담보 대출 제공업체로서 2024년 상반기 비감사 재무 결과를 발표했습니다. 주요 내용은 다음과 같습니다:
- 총 대출 원금이 전년 대비 9.6% 증가하여 RMB16.0억(US$2.2억)에 도달했습니다.
- 총 이자 및 수수료 수익이 4.7% 증가하여 RMB926.5백만(US$127.5백만)에 도달했습니다.
- 상업 은행 파트너십 모델에 따른 순수익이 16.6% 증가하여 RMB58.4백만(US$8.0백만)에 달했습니다.
- 순이익은 2023년 상반기 RMB93.1백만에서 RMB48.0백만(US$6.6백만)으로 감소했습니다.
회사는 거시 경제 불확실성 속에서 비즈니스 기반을 강화하고 자산 품질을 보장하는 데 집중했습니다. 대출 발생 및 이자 수익이 증가했지만, 신용 손실을 대비한 높은 충당금이 수익성에 영향을 미쳤습니다. CNFinance는 향후 신용 평가를 최적화하고, 금융 비용을 줄이며, 제품 제공을 향상시켜 자산 품질과 수익성을 우선시할 계획입니다.
CNFinance Holdings (NYSE: CNF), un leader des prêts sur valeur domiciliaire en Chine, a publié ses résultats financiers non audités pour le premier semestre 2024. Les points clés incluent :
- Le capital total des prêts en cours a augmenté de 9,6 % par rapport à l'année précédente, atteignant RMB16,0 milliards (US$2,2 milliards)
- Les revenus totaux d'intérêts et de frais ont augmenté de 4,7 %, atteignant RMB926,5 millions (US$127,5 millions)
- Les revenus nets sous le modèle de partenariat avec les banques commerciales ont augmenté de 16,6 %, atteignant RMB58,4 millions (US$8,0 millions)
- Le bénéfice net a diminué à RMB48,0 millions (US$6,6 millions) contre RMB93,1 millions au premier semestre 2023
L'entreprise s'est concentrée sur le renforcement de sa base commerciale et l'assurance de la qualité des actifs dans un contexte macroéconomique incertain. Bien que les origines de prêts et les revenus d'intérêts aient augmenté, une provision plus élevée pour pertes sur crédit a eu un impact sur la rentabilité. CNFinance vise à donner la priorité à la qualité des actifs et à la rentabilité à l'avenir en optimisant l'évaluation du crédit, en réduisant les coûts de financement et en améliorant son offre de produits.
CNFinance Holdings (NYSE: CNF), ein führender Anbieter von Eigenheimkrediten in China, hat seine ungeprüften finanziellen Ergebnisse für das erste Halbjahr 2024 veröffentlicht. Die wichtigsten Highlights umfassen:
- Das insgesamt ausstehende Kreditvolumen stieg im Jahresvergleich um 9,6% auf RMB16,0 Milliarden (US$2,2 Milliarden)
- Die Gesamteinnahmen aus Zinsen und Gebühren stiegen um 4,7% auf RMB926,5 Millionen (US$127,5 Millionen)
- Die Nettoerträge unter dem Partnerschaftsmodell mit Geschäftsbanken wuchsen um 16,6% auf RMB58,4 Millionen (US$8,0 Millionen)
- Der Nettogewinn sank auf RMB48,0 Millionen (US$6,6 Millionen) im Vergleich zu RMB93,1 Millionen im ersten Halbjahr 2023
Das Unternehmen konzentrierte sich darauf, seine Geschäftsgrundlage zu stärken und die Asset-Qualität in Zeiten makroökonomischer Unsicherheiten zu gewährleisten. Während die Kreditvergaben und die Zinserträge zunahmen, beeinträchtigte eine höhere Dotierung für Kreditverluste die Rentabilität. CNFinance möchte künftig die Asset-Qualität und Rentabilität priorisieren, indem es die Kreditbewertung optimiert, die Finanzierungskosten senkt und das Produktangebot verbessert.
- Total outstanding loan principal increased 9.6% year-over-year to RMB16.0 billion
- Total interest and fees income rose 4.7% to RMB926.5 million
- Net revenue under commercial bank partnership model grew 16.6% to RMB58.4 million
- Recovery rate on delinquent loans improved to 110% in H1 2024
- Basic and diluted earnings per ADS were RMB0.70 (US$0.10)
- Net income decreased to RMB48.0 million from RMB93.1 million in H1 2023
- Provision for credit losses increased 31.8% to RMB170.8 million
- Total operating expenses increased by 14.4% to RMB204.7 million
- Delinquency ratio increased from 15.5% as of December 31, 2023 to 17.4% as of June 30, 2024
- NPL ratio slightly increased from 1.1% as of December 31, 2023 to 1.2% as of June 30, 2024
Insights
CNFinance's H1 2024 results show mixed signals. While total outstanding loan principal grew
Key positives include
The company's focus on strengthening business foundations and ensuring asset quality in response to macroeconomic uncertainties is prudent. Their strategy to optimize credit assessment models and support sales partners could help mitigate risks, but investors should closely monitor asset quality metrics in upcoming quarters.
CNFinance's performance reflects broader trends in China's home equity loan market. The
The company's focus on strengthening collaborations with asset management companies for loan collection is a strategic move, resulting in a notable
Investors should note the company's shift towards prioritizing asset quality and profitability over growth. This conservative stance, coupled with efforts to reduce financing costs and diversify product offerings, could position CNFinance well to navigate potential market turbulence ahead.
From a legal perspective, CNFinance's operations appear compliant with regulatory requirements. The company's continued share repurchase program, recently extended and expanded to
The mention of a subsidiary being classified as a qualified software enterprise with tax-exempt revenue is noteworthy. This classification has contributed to a lower effective tax rate of
The company's increased collaboration with third-party asset management companies for loan collection warrants attention. While effective, it's important that these partnerships adhere to all relevant regulations to avoid potential legal complications in debt collection practices.
First Half of 2024 Operational and Financial Highlights
- Total outstanding loan principal[1] was
RMB16.0 billion (US ) as of June 30, 2024, representing an increase of$2.2 billion 9.6% fromRMB14.6 billion as of June 30, 2023. - Total interest and fees income were
RMB926.5 million (US ) in the first half of 2024, representing an increase of$127.5 million 4.7% fromRMB884.5 million in the same period of 2023. - Net revenue under the commercial bank partnership model was
RMB58.4 million (US ) in the first half of 2024, representing an increase of$8.0 million 16.6% fromRMB50.1 million in the same period of 2023. - Net interest and fees income after collaboration cost increased by
5.3% toRMB424.0 million (US ) for the first half of 2024 from$58.3 million RMB402.7 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. 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. |
First Half of 2024 Financial Results
Total interest and fees income increased by
Interest and financing service fees on loans increased by
Interest income charged to sales partners, representing fee charged to sales partners who choose to repurchase default loans in installments, increased by
Interest on deposits with banks decreased by
Total interest and fees expenses increased by
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
Net interest and fees income after collaboration cost increased by
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
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
Employee compensation and benefits were
Taxes and surcharges decreased by
Operating lease cost was
Other expenses increased by
Income tax expense was
Effective tax rate was
Net income was
Basic and diluted earnings per ADS were
As of June 30, 2024, the Company had cash and cash equivalents and restricted cash of
The delinquency ratio (excluding loans held for sale) for loans originated by the Company increased from
The NPL ratio (excluding loans held for sale) for loans originated by the Company was
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
Conference Call
CNFinance's management will host an earnings conference call at 8:00 AM
Dial-in numbers for the live conference call are as follows:
International: | +1-412-902-4272 |
Mainland | +86-4001-201203 |
+1-888-346-8982 | |
+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 September 2, 2024.
Dial-in numbers for the replay are as follows:
International: | +1-412-317-0088 |
+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 CNFinance Holdings Limited
CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company") is a leading home equity loan service provider in
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, 2023 |
June 30, 2024 | |||||||||||||||
RMB | RMB | US$ | ||||||||||||||
Assets | ||||||||||||||||
Cash, cash equivalents and restricted cash | 2,001,602 |
1,612,140 | 221,838 | |||||||||||||
Loans principal, interest and financing | 9,815,754 | 10,167,752 | 1,399,129 | |||||||||||||
Allowance for credit losses | 781,795 | 755,279 | 103,930 | |||||||||||||
Net loans principal, interest and financing | 9,033,959 | 9,412,473 | 1,295,199 | |||||||||||||
Loans held-for-sale | 2,471,414 | 3,213,653 | 442,213 | |||||||||||||
Investment securities | 413,908 | 320,735 | 44,135 | |||||||||||||
Property and equipment | 8,159 | 190,069 | 26,154 | |||||||||||||
Intangible assets and goodwill | 3,015 | 3,007 | 414 | |||||||||||||
Deferred tax assets | 92,225 | 108,025 | 14,865 | |||||||||||||
Deposits | 163,114 | 174,534 | 24,017 | |||||||||||||
Right-of-use assets | 27,828 | 22,874 | 3,148 | |||||||||||||
Guaranteed assets | 875,031 | 1,003,040 | 138,023 | |||||||||||||
Other assets | 1,274,091 | 1,218,465 | 167,666 | |||||||||||||
Total assets | 16,364,346 | 17,279,015 | 2,377,672 | |||||||||||||
Liabilities and shareholders' equity | ||||||||||||||||
Interest-bearing borrowings | ||||||||||||||||
Borrowings under agreements to | 686,581 | 1,210,705 | 166,599 | |||||||||||||
Other borrowings | 8,243,615 | 8,316,767 | 1,144,425 | |||||||||||||
Accrued employee benefits | 25,663 | 16,492 | 2,269 | |||||||||||||
Income taxes payable | 181,032 | 188,850 | 25,987 | |||||||||||||
Deferred tax liabilities | 72,579 | 72,289 | 9,947 | |||||||||||||
Lease liabilities | 26,073 | 21,512 | 2,960 | |||||||||||||
Credit risk mitigation position | 1,589,184 | 1,644,925 | 226,349 | |||||||||||||
Other liabilities | 1,530,692 | 1,748,701 | 240,630 | |||||||||||||
Total liabilities | 12,355,419 | 13,220,241 | 1,819,166 | |||||||||||||
Ordinary shares ( | 917 | 917 | 126 | |||||||||||||
Treasury stock | (118,323) | (122,396) | (16,842) | |||||||||||||
Additional paid-in capital | 1,031,721 | 1,031,721 | 141,970 | |||||||||||||
Retained earnings | 3,103,957 | 3,151,897 | 433,715 | |||||||||||||
Accumulated other comprehensive losses | (9,345) |
(3,365) | (463) | |||||||||||||
Total shareholders' equity | 4,008,927 | 4,058,774 | 558,506 | |||||||||||||
Total liabilities and shareholders' equity | 16,364,346 | 17,279,015 | 2,377,672 | |||||||||||||
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 | 2024 | 2024 | ||||||||||
RMB | RMB | US$ | ||||||||||
Interest and fees income | ||||||||||||
Interest and financing service fees on loans | 807,372 | 834,101 | 114,776 | |||||||||
Interest income charged to sales partners | 65,967 | 83,089 | 11,434 | |||||||||
Interest on deposits with banks | 11,162 | 9,300 | 1,279 | |||||||||
Total interest and fees income | 884,501 | 926,490 | 127,489 | |||||||||
Interest expenses on interest-bearing borrowings |
(366,286) |
(401,738) |
(55,281) | |||||||||
Total interest and fees expenses |
(366,286) |
(401,738) |
(55,281) | |||||||||
Net interest and fees income | 518,215 | 524,752 | 72,208 | |||||||||
Net revenue under the commercial bank partnership model | 50,059 | 58,390 | 8,035 | |||||||||
Collaboration cost for sales partners | (165,583) | (159,171) | (21,903) | |||||||||
Net interest and fees income after collaboration cost | 402,691 | 423,971 | 58,340 | |||||||||
Provision for credit losses | (129,621) | (170,751) | (23,496) | |||||||||
Net interest and fees income after collaboration cost and | 273,070 | 253,220 | 34,844 | |||||||||
Realized gains on sales of investments, net | 15,718 | 1,150 | 158 | |||||||||
Net losses on sales of loans | (4,163) | (1,754) | (241) | |||||||||
Other gains, net | 16,709 | 11,056 | 1,521 | |||||||||
Total non-interest income | 28,264 | 10,452 | 1,438 | |||||||||
Operating expenses | ||||||||||||
Employee compensation and benefits | (94,962) | (86,926) | (11,961) | |||||||||
Taxes and surcharges | (16,435) | (12,023) | (1,654) | |||||||||
Operating lease cost | (7,832) | (8,780) | (1,208) | |||||||||
Other expenses | (59,769) | (96,954) | (13,342) | |||||||||
Total operating expenses | (178,998) | (204,683) | (28,165) | |||||||||
Income before income tax expense | 122,336 | 58,989 | 8,117 | |||||||||
Income tax expense | (29,221) | (11,049) | (1,520) | |||||||||
Net income | 93,115 | 47,940 | 6,597 | |||||||||
Earnings per share | ||||||||||||
Basic | 0.07 | 0.04 | 0.005 | |||||||||
Diluted | 0.06 | 0.04 | 0.005 | |||||||||
Earnings per ADS (1 ADS equals 20 ordinary shares) | ||||||||||||
Basic | 1.36 | 0.70 | 0.10 | |||||||||
Diluted | 1.22 | 0.70 | 0.10 | |||||||||
Other comprehensive Income | ||||||||||||
Foreign currency translation adjustment | 7,378 | 5,980 | 823 | |||||||||
Comprehensive income | 100,493 | 53,920 | 7,420 | |||||||||
Less: net income attributable to non-controlling interests | 8,937 | - | - | |||||||||
Total comprehensive income attributable to ordinary | 91,556 | 53,920 | 7,420 | |||||||||
View original content:https://www.prnewswire.com/news-releases/cnfinance-announces-first-half-of-2024-unaudited-financial-results-302231534.html
SOURCE CNFinance Holdings Limited
FAQ
What was CNFinance's (CNF) total outstanding loan principal as of June 30, 2024?
How much did CNFinance's (CNF) total interest and fees income increase in H1 2024?
What was CNFinance's (CNF) net income for the first half of 2024?
How did CNFinance's (CNF) delinquency ratio change in H1 2024?
