GUANGZHOU, China, March 16, 2021 /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, 2020.
Fourth Quarter 2020 Operational and Financial
Highlights
- Total loan origination volume[1] was RMB2.7 billion during the fourth quarter of 2020,
representing an increase of 35.0% from RMB2.0 billion in the same period of 2019.
- Total number of transactions[2] was 5,172 during the
fourth quarter of 2020, representing an increase of 20.7% from
4,284 in the same period of 2019.
- Total interest and fees income were RMB421.1 million (US$64.5
million) in the fourth quarter of 2020, representing a
decrease of 29.5% from RMB596.9
million in the same period of 2019.
- Net income was RMB105.3 million
(US$16.2 million) in the fourth
quarter of 2020, representing an increase of 72.6% from
RMB61.0 million in the same period of
2019.
- Basic and diluted earnings per ADS were RMB1.54 (US$0.24)
and RMB1.42(US$0.22), respectively, in the fourth quarter of
2020, as compared to RMB0.89 and
RMB0.81, respectively, in the same
period of 2019.
Fiscal Year 2020 Operational and Financial Highlights
- Total loan origination volume[1] was RMB8.8 billion during the fiscal year of 2020,
representing an increase of 39.7% from RMB6.3 billion in 2019.
- Total outstanding loan principal[3] was RMB9.7 billion as of December 31, 2020, as compared to RMB11.3 billion as of December 31, 2019.
- Total number of active borrowers[4] was 25,337 as of
December 31, 2020, as compared to
25,253 as of December 31, 2019.
- Total number of transactions was 17,703 during the fiscal year
of 2020, representing an increase of 38.4% from 12,790 in
2019.
- Total interest and fees income were RMB1,844.8 million (US$282.8 million) for the fiscal year of 2020,
representing a decrease of 37.9% from RMB2,970.2 million in 2019.
- Net income was RMB114.9 million
(US$17.6 million) for the fiscal year
of 2020, representing a decrease of 78.5% from RMB534.6 million in 2019.
- Basic and diluted earnings per ADS were RMB1.67(US$0.26)
and RMB1.55 (US$0.24), respectively, in the fiscal year of
2020, as compared to RMB7.80 and
RMB7.29, respectively, in 2019.
|
[1] Refers
to the total amount of loans CNFinance originated during the
relevant period.
|
|
[2] Refers
to the total number of loans CNFinance originated during the
relevant period.
|
|
[3] Refers
to the total amount of loans outstanding for loans CNFinance at the
end of the relevant period.
|
|
[4] Refers
to borrowers with outstanding loan principal of home equity loans
as at the end of a specific period.
|
"2020 was a special year under the influence of COVID-19
pandemic, it was also the second year since our adoption of the
collaboration model. In 2019, we achieved smooth transition from
the old model to the collaboration model and kept improving its
application. In 2020, the refined collaboration model has proved
its capability to overcome obstacles brought by the changing
business environment. For the fiscal year of 2020, we facilitated
loans amounting RMB8.8 billion,
representing an increase of 40% as compared to 2019, we also
recorded a revenue of RMB1.8 billion
and a net income of RMB114.9 million.
Those results were of strong proof to the efficiency of the
collaboration model, and further enhanced our confidence to keep
promoting the model. Our collaboration model and loan products have
also been well recognized by the market. At the end of the year,
the signed sales partners reached 1,700 as compared to 1,300 in
2019, representing an increase of 31%.
Report on the Work of the Government in 2021 declared that we
"should continuously be working on providing financial solutions
for MSEs", which is exactly what we have been dedicated to. We
believe in 2021, in order to better serve our sales partners and
MSE owners and reach our set goal of exceeding RMB10 billion in outstanding loans under the
collaboration model, we will continue to refine our product design,
sales partners service and platform operation, and continue to
create value for our shareholders." Commented Mr.Zhai Bin, Chairman
and CEO of CNFinance."
Fourth Quarter 2020 Financial Results
Total interest and fees income for the fourth
quarter of 2020 decreased by 29.5% to RMB421.1 million (US$64.5
million) as compared to RMB596.9
million for the same period of 2019, primarily due to a
decrease in the balance of average daily loans
outstanding.
Interest and financing service fees on loans decreased by
29.5% to RMB417.1 million
(US$63.9 million) for the fourth
quarter of 2020 as compared to RMB591.8
million for the same period of 2019, primarily due to the
combined effect of (a) the decrease in the balance of average daily
outstanding loan principal, and (b) the lowered interest rate on
loans facilitated in an effort to comply with recent rules and
regulations issued by relevant PRC regulatory authorities,
including the Decisions of the Supreme People's Court to Amend the
Provisions on Several Issues concerning the Application of Law in
the Trial of Private Lending Cases issued in August 2020.
Interest on deposits with banks decreased by 21.6%
to RMB4.0 million (US$0.6 million) for the fourth quarter of 2020 as
compared to RMB5.1 million for the
same period of 2019, primarily due to smaller average daily balance
of time deposits.
Interest and fees expenses decreased by 32.7% to
RMB159.3 million (US$24.4 million) for the fourth quarter of 2020
as compared to RMB236.8 million for
the same period of 2019, primarily due to the decrease in the
principal of the borrowings under agreements to repurchase and
other borrowings.
Net interest and fees income decreased by 27.3% to
RMB261.8 million (US$40.1 million) for the fourth quarter of 2020
as compared to RMB360.1 million for
the same period of 2019.
Collaboration cost for sales partners, representing sales
incentives paid to sales partners, increased to RMB104.4 million (US$16.0
million) for the fourth quarter of 2020 as compared to
RMB75.8 million for the same period
of 2019, primarily due to the increase in average daily outstanding
loan principal under the collaboration model since December 2018 as compared to the same period of
2019.
Net interest and fees income after collaboration
cost was RMB157.4 million
(US$24.1 million) for the fourth
quarter of 2020, representing a decrease of 44.6% from RMB284.3 million in the same period of 2019.
Provision for credit losses decreased by 171.6% and
recorded a reversal of RMB28.5
million (US$4.4 million) for
the fourth quarter of 2020 as compared to the provision of
RMB39.8 million for the same period
of 2019. The decrease was mainly attributable to the combined
effect of (a) the decrease in loan balance; (b) the increase in
outstanding loan principal under the collaboration model that was
guaranteed by Credit Risk Mitigation Position put up by the sales
partners; and (c) the current expected credit loss (CECL) model
adopted since 2020 took into account the containment of COVID-19
pandemic which led to positive overlook of economy growth in
China as compared to the same
period of 2019.
Other gains, net was RMB51.6
million (US$7.9 million) for
the fourth quarter of 2020, compared to a loss of RMB0.7 million for the same period of 2019,
primarily attributable to the increase of net gain from the
disposal of non-performing loans and Credit Risk Mitigation
Position forfeited by the sales partners.
Total operating expenses decreased by 31.0% to
RMB112.6 million (US$17.2 million) for the fourth quarter of 2020,
compared with RMB163.1 million for
the same period of 2019.
Employee compensation and benefits decreased by
22.6% to RMB52.2 million
(US$8.0 million) for the fourth
quarter of 2020 as compared to RMB67.4
million for the same period of 2019, primarily due to the
decrease in the number of employees as a result of the development
of the collaboration model.
Share-based compensation
expense increased by 287.5% to RMB15.5 million (US$2.4
million) for the fourth quarter of 2020 as compared to
RMB4.0 million for the same period of
2019. According to the Company's share option plan adopted on
December 31, 2019, approximately 50%,
30% and 20% of the option granted will be vested on December 31, 2020, 2021 and 2022, respectively.
Related compensation cost of the option grants will be recognized
over the requisite period. The Company recognized compensation
cost of RMB15.5 million in each
quarter of 2020 for the 50% of the share option plan of 2019, and
recognized compensation cost of RMB4.0
million in each quarter of 2019 for the original share
option plan adopted in 2018. The compensation cost of the
original share option plan of 2018 was fully recognized by the end
of 2019.
Taxes and surcharges decrease by 36.5% to
RMB12.7 million (US$1.9 million) for the fourth quarter of 2020,
as compared to RMB20.0 million for
the same period of 2019, primarily attributable to a decrease in
the non-deductible value added tax ("VAT"). The decrease in VAT was
attributable to the characterization of certain amounts as "service
fees charged to trust plans" which are a non-deductible item.
According to Chinese tax regulations, "service fees charged to
trust plans" incur a 6% VAT on the subsidiary level, but are not
recorded as input VAT on a consolidated trust plan level.
Operating lease cost decreased by 42.5% to
RMB 4.6 million (US$0.7 million) for the fourth quarter of 2020 as
compared to RMB8.0 million for the
same period of 2019, primarily due to continued development of the
collaboration model that allowed the Company to continue to reduce
the costs associated with leased real estates previously used for
sales efforts.
Other expenses decreased by 56.7% to RMB27.6 million (US$4.2
million) for the fourth quarter of 2020 as compared to
RMB63.7 million for the same period
of 2019, primarily due to (a) a decrease in promotion costs as the
collaboration model has been well recognized by the market and
requires less promotion; (b) a decrease in the attorney's fees
during the ordinary course of business resulted from smaller amount
of NPLs disposed through judicial procedure because the Company
chose to sell more NPLs to third party purchasers to accelerate
recovery of cash; and (c) a decrease in the costs related to
business trips resulted from the COVID-19 pandemic throughout the
period.
Income tax expenses increased by 4.8% to
RMB24.2 million (US$3.7 million) for the fourth quarter of 2020 as
compared to RMB23.1 million for the
same period of 2019, primarily due to the increase in taxable
income for the fourth quarter of 2020.
Net income increased by 72.6% to RMB105.3 million (US$16.2
million) for the fourth quarter of 2020 as compared to
RMB61.0 million for the same period
of 2019.
Effective tax rate was 18.7% for the fourth quarter
of 2020 as compared to 27.5% in the same period of 2019, primarily
due to the combined effect of (a) the non-deductible share-based
compensation expenses which increased to RMB15.5 million (US$2.4
million) for the fourth quarter of 2020 from RMB4.0 million in the same period of 2019; and
(b) the proceeds of RMB50.6 million
(US$7.8 million) tax-free dividends
from equity investment funds in the fourth quarter of 2020.
Basic and diluted earnings per ADS were RMB1.54 (US$0.24)
and RMB1.42 (US$0.22), respectively, compared to RMB0.89 and RMB0.81, respectively, for the same period of
2019. One ADS represents 20 ordinary shares.
Fiscal Year 2020 Financial Results
Total interest and fees income for fiscal year 2020
decreased by 37.9% to RMB1,844.8
million (US$282.8 million) as
compared to RMB2,970.2 million for
the same period of 2019, primarily due to a decrease in the balance
of average daily loans outstanding.
Interest and financing service fees on loans decreased by
38.1% to RMB1,828.7 million
(US$280.3 million) for the fiscal
year of 2020 as compared to RMB2,953.5
million for the same period of 2019, primarily due to the
combined effect of (a) the decrease in the balance of average daily
outstanding loan principal, and (b) the lowered interest rate on
loans facilitated in an effort to comply with recent rules and
regulations issued by relevant PRC regulatory authorities,
including the Decisions of the Supreme People's Court to Amend the
Provisions on Several Issues concerning the Application of Law in
the Trial of Private Lending Cases issued in August 2020.
Interest on deposits with banks decreased by 3.6% to
RMB16.1 million (US$2.5 million) for the fiscal year of 2020 as
compared to RMB16.7 million for the
same period of 2019.
Interest and fees expenses decreased by 44.2% to
RMB731.3 million (US$112.1 million) for the fiscal year of 2020 as
compared to RMB1,309.8 million for
the same period of 2019, primarily due to the decrease in the
principal of the borrowings under agreements to repurchase and
other borrowings.
Net interest and fees income decreased by 32.9% to
RMB1,113.5 million (US$170.7 million) for the fiscal year of 2020 as
compared to RMB1,660.4 million for
the same period of 2019.
Collaboration cost for sales partners representing sales
incentives paid to sales partners increased to RMB415.1 million (US$63.6
million) for the fiscal year of 2020 as compared to
RMB174.0 million for the same period
of 2019, primarily due to the increase in average daily outstanding
loan principal under the collaboration model since December 2018 as compared to the same period of
2019.
Net interest and fees income after collaboration
cost was RMB698.4 million
(US$107.1 million) for the fiscal
year of 2020, representing a decrease of 53.0% as compared to
RMB1,486.4 million for the same
period of 2019.
Provision for credit losses decreased by 22.8% to
RMB280.0 million (US$42.9 million) for the fiscal year of 2020 as
compared to RMB362.8 million for the
same period of 2019. The decrease was mainly attributable to the
combined effect of (a) the decrease in loan balance; (b) the
increase in outstanding loan principal under the collaboration
model that was guaranteed by Credit Risk Mitigation Position put up
by the sales partners; and (c) the current expected credit loss
(CECL) model adopted since 2020 took into account the overlook of
the economy growth in China
impacted by the COVID-19 pandemic.
Other gains, net was the net gains of RMB169.4 million (US$26.0
million) for the fiscal year of 2020, compared with the net
gains of RMB82.3 million in the same
period of 2019, primarily attributable to the gains from disposing
non-performing assets during the year and Credit Risk Mitigation
Position forfeited by the sales partners.
Total operating expenses decreased by 16.1% to
RMB445.3 million (US$68.2 million) for the fiscal year of 2020 as
compared to RMB531.0 million for the
same period of 2019.
Employee compensation and benefits decreased by 16.5% to
RMB190.4 million (US$29.2 million) for the fiscal year of 2020 as
compared to RMB228.1 million for the
same period of 2019, primarily due to the continued decrease in the
number of employees as a result of the development of the
collaboration model.
Share-based compensation expense increased by
290.6% to RMB62.1 million
(US$9.5 million) for the fiscal year
of 2020 as compared to RMB15.9
million for the same period of 2019. According to the
Company's share option plan adopted on December 31, 2019, approximately 50%, 30% and 20%
of the option granted will be vested on December 31, 2020, 2021 and 2022, respectively.
Related compensation cost of the option grants will be recognized
over the requisite period. The Company recognized compensation
cost of RMB62.1 million in 2020 for
the 50% of the share option plan of 2019, and recognized
compensation cost of RMB15.9 million
in 2019 for the original share option plan adopted in 2018.
The compensation cost of the original share option plan of 2018 was
fully recognized by the end of 2019.
Taxes and surcharges decreased by 26.9 % to
RMB49.5 million (US$7.6 million) for the fiscal year of 2020 as
compared to RMB67.7 million for the
same period of 2019, primarily attributable to (a) the decrease in
taxable revenue, and (b) a decrease in the non-deductible value
added tax ("VAT"). The decrease in VAT, in turn, was attributable
to characterization of certain amounts as "service fees charged to
trust plans" which are a non-deductible item. According to Chinese
tax regulations, "service fees charged to trust plans" incur a 6%
VAT on the subsidiary level, but are not recorded as input VAT on a
consolidated trust plan level.
Operating lease cost decreased by 40.7% to RMB21.7 million (US$3.3
million) for the fiscal year of 2020 as compared to
RMB36.6 million for the same period
of 2019, primarily due to continued development of the
collaboration model that allowed the Company to continue to reduce
the costs associated with leased real estates previously used for
sales efforts.
Other expenses decreased by 33.4% to RMB121.6 million (US$18.6
million) for the fiscal year of 2020 as compared to
RMB182.7 million for the same period
of 2019, primarily due to (a) a decrease in promotion costs as the
collaboration model has been well recognized by the market and
requires less promotion; (b) a decrease in the attorney's fees
during the ordinary course of business resulted from smaller amount
of NPLs disposed through judicial procedure because the Company
chose to sell more NPLs to third party purchasers to accelerate
recovery of cash; and (c) a decrease in the costs related to
business trips resulted from the COVID-19 pandemic throughout the
year.
Income tax expenses decreased by 74.4% to RMB47.8 million (US$7.3
million) for the fiscal year of 2020 as compared to
RMB186.4 million for the same period
of 2019, primarily due to the decrease in the amount of taxable
income.
Net income decreased by 78.5% to RMB114.9 million (US$17.6
million) for the fiscal year of 2020 as compared to
RMB534.6 million for the same period
of 2019.
Effective tax rate increased to 29.4% for the fiscal
year of 2020 from 25.8% in the same period of 2019, primarily
due to the combined effect of (a) the non-deductible share-based
compensation expenses which increased to RMB62.1 million (US$9.5
million) for the fiscal year of 2020 from RMB15.9 million in the same period of 2019; and
(b) the proceeds of RMB50.6 million
(US$7.8 million) tax-free dividends
from equity investment funds in 2020.
Basic and diluted earnings per ADS were RMB1.67 (US$0.26)
and RMB1.55 (US$0.24), respectively, compared to RMB7.80 and RMB7.29, respectively, in the same period of
2019. One ADS represents 20 ordinary shares.
As of December 31, 2020, the
Company held cash and cash equivalents of RMB2.0 billion (US$300.5
million), compared with RMB1.7
billion as of December 31,
2019, including RMB1.0
billion (US$ 158.6 million) and
RMB1.1 billion from structured funds
as of December 31, 2020 and
December 31, 2019, respectively,
which could only be used to grant new loans and activities.
The aggregate delinquency rate for loans originated by
the Company, which is calculated by dividing (i) total balance of
outstanding loan principal for which any installment payment is
past-due (for one or more days) as of a particular date, by (ii)
the aggregate total amount of loans we originated since 2014,
increased from 5.4% as of December 31,
2019 to 5.7% as of December 31,
2020.
The actual delinquency rate for loans originated by the
Company increased from 17.1% as of December
31, 2019 to 22.6% as of December 31,
2020.
Business Outlook
The extent to which the COVID-19 pandemic impacts the Company's
results of operations will depend on future developments of the
pandemic in China and across the
globe, which are subject to changes and substantial uncertainty and
therefore cannot be predicted. For the first quarter of 2021, based
on the information available as of the date of this press release,
we expect net income to be no more than RMB50 million.
The above outlook is based on the current market conditions and
reflects our current and preliminary estimates of market and
operating conditions, which are all subject to substantial
uncertainty.
Conference Call
CNFinance's management will host an earnings conference call at
8:00 AM U.S. Eastern Time on
Monday, March 16, 2021 (8:00 PM Beijing/ Hong Kong Time on the same day,
March 16, 2021).
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 March 23,
2021.
Dial-in numbers for the replay are as follows:
|
International:
|
+1-412-317-0088
|
|
United
States:
|
+1-877-344-7529
|
|
Passcode:
|
10153108
|
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 consolidated financial statements may be
identified when audit work has been performed for the Company's
year-end audit, which could result in significant differences from
this preliminary unaudited financial information.
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
RMB6.5249 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 31,
2020. 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,
2020, 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, and relevant government policies and regulations
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 conducts business
by collaborating with sales partners and trust company partners.
Sales partners are responsible for recommending micro-and
small-enterprise ("MSE") owners with financing needs to the Company
and the Company introduces eligible borrowers to its trust company
partners 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 in
China. The loans CNFinance
facilitates are primarily funded through a trust lending model with
its trust company partners who are well-established with sufficient
funding sources and have licenses to engage in lending business
nationwide. 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.
|
CNFINANCE HOLDINGS
LIMITED
|
|
Unaudited condensed
consolidated balance sheets (in thousands)
|
|
|
December 31, 2019
|
December 31,
2020
|
|
RMB
|
RMB
|
US$
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,705,356
|
1,960,923
|
300,529
|
|
Loans principal,
interest and financing service fee
receivables (1) (net of allowance of
RMB561,818 and
RMB659,479 as of December 31, 2019 and December
31, 2020, respectively)
|
10,258,019
|
9,029,462
|
1,383,847
|
|
Investment
securities
|
654,328
|
418,137
|
64,083
|
|
Property and
equipment
|
9,196
|
4,716
|
723
|
|
Intangible assets and
goodwill
|
3,738
|
3,230
|
495
|
|
Deferred tax
assets
|
16,441
|
20,919
|
3,206
|
|
Deposits
|
133,513
|
114,052
|
17,479
|
|
Right-of-use
assets
|
38,134
|
19,468
|
2,984
|
|
Other
assets
|
207,524
|
634,030
|
97,171
|
|
|
|
|
|
Total
assets
|
13,026,249
|
12,204,937
|
1,870,517
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
Interest-bearing
borrowings
|
|
|
|
|
Borrowings under agreements to repurchase
|
870,778
|
508,577
|
77,944
|
|
Other borrowings
|
6,652,138
|
5,649,669
|
865,863
|
|
Accrued employee
benefits
|
37,276
|
29,627
|
4,541
|
|
Income tax
payable
|
136,932
|
418,949
|
64,208
|
|
Deferred tax
liabilities
|
359,286
|
77,547
|
11,885
|
|
Lease
liabilities
|
38,134
|
19,545
|
2,995
|
|
Credit risk mitigation
position
|
928,702
|
1,209,729
|
185,402
|
|
Other
liabilities
|
404,469
|
550,043
|
84,299
|
|
|
|
|
|
Total
liabilities
|
9,427,715
|
8,463,686
|
1,297,137
|
|
|
|
|
|
Ordinary shares
(3,800,000,000 shares authorized,
1,371,643,240 shares with USD0.0001 as par value
issued as of December 31, 2019 and 2020,
respectively)
|
917
|
917
|
141
|
|
Additional paid-in
capital
|
937,590
|
999,663
|
153,207
|
|
Retained
earnings
|
2,662,146
|
2,759,128
|
422,861
|
|
Accumulated other
comprehensive losses
|
(2,119)
|
(18,457)
|
(2,829)
|
|
|
|
|
|
Total shareholders'
equity
|
3,598,534
|
3,741,251
|
573,380
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
13,026,249
|
12,204,937
|
1,870,517
|
|
|
|
|
|
(1) Loans held-for-sale are measured
at the lower of cost or fair value, with valuation changes recorded
in noninterest revenue.
The valuation is performed on an individual loan basis. Loans
transferred to held-for-sale category were RMB370,700,724
(includes RMB66,698,869 measured at fair value) and RMB586,206,781
(includes RMB76,013,067 measured at fair value)
as at December 31,2019 and 2020 respectively.
|
|
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
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
US$
|
|
Interest and fees
income
|
|
|
|
|
|
|
|
|
Interest and financing
service fees on
loans
|
591,828
|
417,118
|
63,927
|
|
Interest on deposits
with banks
|
5,074
|
3,992
|
612
|
|
|
|
|
|
Total interest and
fees income
|
596,902
|
421,110
|
64,539
|
|
|
|
|
|
Interest and fees
expenses
|
(236,808)
|
(159,312)
|
(24,416)
|
|
|
|
|
|
Net interest and
fees income
|
360,094
|
261,798
|
40,123
|
|
|
|
|
|
Collaboration cost for
sales partners
|
(75,777)
|
(104,381)
|
(15,997)
|
|
|
|
|
|
Net interest and
fees income after
collaboration cost
|
284,317
|
157,417
|
24,126
|
|
Provision for credit
losses
|
(39,810)
|
28,459
|
4,362
|
|
|
|
|
|
Net interest and
fees income after
collaboration cost and provision
for credit losses
|
244,507
|
185,876
|
28,488
|
|
|
|
|
|
Realized gains on
sales of investments,
net
|
3,447
|
4,609
|
706
|
|
Other (losses)/gains,
net
|
(697)
|
51,565
|
7,903
|
|
|
|
|
|
Total non-interest
revenue
|
2,750
|
56,174
|
8,609
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Employee compensation
and benefits
|
(67,439)
|
(52,213)
|
(8,002)
|
|
Share-based
compensation expenses
|
(3,972)
|
(15,518)
|
(2,378)
|
|
Taxes and
surcharges
|
(19,991)
|
(12,668)
|
(1,941)
|
|
Operating lease
cost
|
(8,036)
|
(4,556)
|
(698)
|
|
Other
expenses
|
(63,723)
|
(27,642)
|
(4,236)
|
|
|
|
|
|
Total operating
expenses
|
(163,161)
|
(112,597)
|
(17,255)
|
|
|
|
|
|
|
|
|
|
Income before
income tax
|
84,096
|
129,453
|
19,842
|
|
Income tax
expense
|
(23,113)
|
(24,172)
|
(3,705)
|
|
|
|
|
|
Net
income
|
60,983
|
105,281
|
16,137
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
0.04
|
0.08
|
0.01
|
|
Diluted
|
0.04
|
0.07
|
0.01
|
|
Earnings per ADS(1 ADS
equals 20
ordinary shares)
|
|
|
|
|
Basic
|
0.89
|
1.54
|
0.24
|
|
Diluted
|
0.81
|
1.42
|
0.22
|
|
|
|
|
|
Other comprehensive
losses
|
|
|
|
|
Net unrealized losses
on investment
securities
|
(390)
|
(593)
|
(91)
|
|
Foreign currency
translation
adjustment
|
(4,047)
|
(11,981)
|
(1,836)
|
|
|
|
|
|
Comprehensive
income
|
56,546
|
92,707
|
14,210
|
|
|
|
|
|
CNFINANCE HOLDINGS
LIMITED
|
|
Unaudited condensed
consolidated statements of comprehensive income
|
|
(In thousands, except
for earnings per share and earnings per ADS)
|
|
|
Twelve months ended
December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
US$
|
|
Interest and fees
income
|
|
|
|
|
|
|
|
|
Interest and financing
service fees on
loans
|
2,953,481
|
1,828,688
|
280,263
|
|
Interest on deposits
with banks
|
16,680
|
16,134
|
2,473
|
|
|
|
|
|
Total interest and
fees income
|
2,970,161
|
1,844,822
|
282,736
|
|
|
|
|
|
Interest and fees
expenses
|
(1,309,836)
|
(731,315)
|
(112,081)
|
|
|
|
|
|
Net interest and
fees income
|
1,660,325
|
1,113,507
|
170,655
|
|
|
|
|
|
Collaboration cost for
sales partners
|
(174,042)
|
(415,104)
|
(63,618)
|
|
|
|
|
|
Net interest and
fees income after
collaboration cost
|
1,486,283
|
698,403
|
107,037
|
|
|
|
|
|
Provision for credit
losses
|
(362,735)
|
(280,001)
|
(42,913)
|
|
|
|
|
|
Net interest and
fees income after
collaboration cost and provision for
credit losses
|
1,123,548
|
418,402
|
64,124
|
|
|
|
|
|
Realized gains on
sales of investments, net
|
46,126
|
20,154
|
3,089
|
|
Other gains,
net
|
82,335
|
169,394
|
25,961
|
|
|
|
|
|
Total non-interest
revenue
|
128,461
|
189,548
|
29,050
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Employee compensation
and benefits
|
(228,135)
|
(190,374)
|
(29,177)
|
|
Share-based
compensation expenses
|
(15,886)
|
(62,073)
|
(9,513)
|
|
Taxes and
surcharges
|
(67,690)
|
(49,453)
|
(7,579)
|
|
Operating lease
cost
|
(36,608)
|
(21,719)
|
(3,329)
|
|
Other
expenses
|
(182,678)
|
(121,628)
|
(18,641)
|
|
|
|
|
|
Total operating
expenses
|
(530,997)
|
(445,247)
|
(68,239)
|
|
|
|
|
|
|
|
|
|
Income before
income tax
|
721,012
|
162,703
|
24,935
|
|
Income tax
expense
|
(186,368)
|
(47,849)
|
(7,333)
|
|
|
|
|
|
Net
income
|
534,644
|
114,854
|
17,602
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
0.39
|
0.08
|
0.01
|
|
Diluted
|
0.36
|
0.08
|
0.01
|
|
Earnings per ADS (1
ADS equals 20
ordinary shares)
|
|
|
|
|
Basic
|
7.80
|
1.67
|
0.26
|
|
Diluted
|
7.29
|
1.55
|
0.24
|
|
|
|
|
|
Other comprehensive
income/(losses)
|
|
|
|
|
Net unrealized losses
on investment
securities
|
(1,518)
|
(171)
|
(26)
|
|
Foreign currency
translation
adjustment
|
3,965
|
(16,166)
|
(2,478)
|
|
|
|
|
|
Comprehensive
income
|
537,091
|
98,517
|
15,098
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/cnfinance-announces-fourth-quarter-2020-and-fiscal-year-2020-unaudited-financial-results-301248217.html
SOURCE CNFinance Holdings Limited