GUANGZHOU, China, March 22,
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 fourth
quarter and fiscal year ended December 31,
2022.
Fourth Quarter 2022 Operational and Financial
Highlights
- Total loan origination volume[1] was RMB2.9 billion (US$425.9
million) during the fourth quarter of 2022, representing a
decrease of 6.5% from RMB3.1 billion
in the same period of 2021.
- Total volume of loans recommended to commercial banks was
RMB1.9 billion (US$276.3 million) during the fourth quarter of
2022.
- Total number of transactions[2] was 7,079 during the
fourth quarter of 2022, representing an increase of 27.3% from
5,559 in the same period of 2021.
- Total interest and fees income were RMB454.5 million (US$65.9 million) in the fourth quarter of 2022,
representing a decrease of
1.2% from RMB460.0 million in the same period of 2021.
- Net income was RMB30.5 million
(US$4.4 million) in the fourth
quarter of 2022, comparing with a net loss of RMB104.6 million in the same period of 2021.
- Basic and diluted earnings per ADS were RMB0.45 (US$0.07)
and RMB0.40 (US$0.06), respectively, in the fourth quarter of
2022, as compared to RMB(1.53) and
RMB(1.53), respectively, in the same
period of 2021.
Fiscal Year 2022 Operational and Financial Highlights
- Total loan origination volume[1] was RMB12.2 billion (US$1.8
billion) during the fiscal year of 2022, representing a
decrease of 4.7% from RMB12.8 billion
in 2021.
- Total volume of loans recommended to commercial banks was
RMB2.5 billion (US$367.3 million) during the fiscal year of
2022.
- Total outstanding loan principal[3] was RMB11.2 billion as of December 31, 2022, as compared to RMB10.4 billion as of December 31, 2021.
- Total number of active borrowers[4] was 21,781 as of
December 31, 2022, as compared to
22,741 as of December 31, 2021.
- Total number of transactions[2] was 23,923 during the fiscal year
of 2022, representing an increase of 8.1% from 22,122 in 2021.
- Total interest and fees income were RMB1,731.4 million (US$251.0 million) for the fiscal year of 2022,
representing a decrease of 4.6%
from RMB1,8158. million in 2021.
- Net income was RMB137.8 million
(US$20.0 million) for the fiscal year
of 2022, representing an increase of 111.3% from RMB65.2
million in 2021.
- Basic and diluted earnings per ADS were RMB2.01 (US$0.29)
and RMB1.80 (US$0.26), respectively, in the fiscal year of
2022, as compared to RMB0.95 and
RMB0.90, respectively, in 2021.
"The year 2022 is another important year in the history of
CNFinance. In 2022, China's real
estate market continued to face downward pressures, and we have
experienced the adjustment to China's pandemic prevention and control
policies. During the year, the management considered the challenges
and chances in a synergetic way and strove to promote high-quality
development of our services. With the joint efforts of every
employee, we were able to deliver a solid result at year end. We
concluded the year facilitating loans of over RMB12.2 billion with trust company partners and
introducing loans of RMB2.5 billion
to the commercial bank partners. The commercial bank partnership
model has grown and become a new contributor to the Company's
revenue stream. At the same time, interest income charged to sales
partners also increased significantly in the fiscal year of 2022 as
compared to that of 2021. We recorded a net income of 137.8
million, representing a year on year increase of 111.3%.
As we affirm the achievements we have made, we must not lose
sight of the difficulties confronting us. We implemented a series
of measures to improve our management efficiencies and will
continue to refine our collaboration model with commercial banks.
We plan to invest more in technology to increase the overall
efficiency in borrower acquisition and initial screening process.
We will also work closely with commercial bank partners to provide
better post-loan services to MSE owners. We believe such
advancements will help CNFinance build more solid foundations to
pursue continuous development in China's inclusive finance industry and allow
us to provide better services to more MSE owners and help them
achieve their business goals." Commented Mr.Zhai Bin, Chairman and
CEO of CNFinance.
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[1] Refers
to the total amount of loans CNFinance originated under the trust
lending model during the relevant period.
|
|
[2] Refers
to the total number of loans CNFinance originated under the trust
lending model and loans recommended to commercial banks during the
relevant period.
|
|
[3] Refers
to the total amount of loans outstanding for loans CNFinance
originated under the trust lending model at the end of the relevant
period.
|
|
[4] Refers
to borrowers with outstanding loan principal of home equity loans
originated under the trust lending model as at the end of a
specific
period.
|
Fourth Quarter 2022 Financial Results
Total interest and fees income for the fourth quarter of
2022 decreased by 1.2% to RMB454.5 million (US$65.9 million) as compared to RMB460.0 million for the same period of 2021.
Interest and financing service fees on loans decreased by
6.1% to RMB417.7 million (US$60.6 million) for the fourth quarter of 2022
as compared to RMB444.7 million for
the same period of 2021, primarily attributable to a decrease in
the balance of average daily outstanding loan principal. Such
decrease was mainly as a result of the Company's transferal of
loans under the traditional facilitation model to third parties in
bulk during the fourth quarter of 2021 along with the impact of
strict pandemic prevention and control measures taken from January
to November 2022, which was partially
offset by an increase in the total outstanding loan principal under
the collaboration model.
Interest income charged to sales
partners, representing fee charged to sales partners who
choose to repurchase default loans in installments, increased by
190.2% to RMB32.5 million
(US$4.7 million) for the fourth
quarter of 2022 from RMB11.2 million
in the same period of 2021, primarily attributable to an increase
in the delinquent loans that were repurchased by the sales partners
in installments.
Interest on deposits with banks increased by 4.9% to
RMB4.3 million (US$0.6 million) for the fourth quarter of 2022 as
compared to RMB4.1 million for the
same period of 2021, primarily due to the higher daily average
amount of time deposits.
Total interest and fees expenses decreased by 1.9%
to RMB201.2 million (US$29.2 million) for the fourth quarter of 2022
as compared to RMB205.2 million for
the same period of 2021, primarily due to a decrease in daily
average outstanding principal of other borrowings.
Net interest and fees income decreased by 0.6% to RMB253.3 million (US$36.7 million) for the fourth quarter of 2022
as compared to RMB254.8 million for
the same period of 2021.
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, was RMB56.3 million (US$8.2
million) for the fourth quarter of 2022. The Company has
started to collaborate with commercial banks since 2021 and such
collaboration grew and scaled in the second half of 2022.
Collaboration cost for sales partners representing sales
incentives paid to sales partners decreased to RMB79.6 million (US$11.5
million) for the fourth quarter of 2022 from RMB119.5 million in the same period of 2021,
primarily attributable to a lower average fee rate the Company paid
to sales partners in the fourth quarter of 2022 as compared to the
same period of 2021. The fee rate under collaboration model varies
based on different collaboration model types and the terms of the
loan.
Net interest and fees income after collaboration cost was
RMB230.0 million (US$33.4 million) for the fourth quarter of
2022, representing an increase of 69.9% from RMB135.4
million in the same period of 2021.
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, was RMB142.7 million (US$20.7 million) for the fourth quarter of 2022
as compared to a reversal of RMB302.8
million for the same period of 2021,. The reversal in 2021
was primarily due to the fact that the Company transferred loans
under the traditional facilitation model to third parties in bulk
during the fourth quarter of 2021 and the allowance of such loans
was reversed. The increase in provision for credit losses in the
fourth quarter of 2022 was mainly due to economic uncertainty
caused by COVID-19 pandemic and the relevant prevention and control
measures, as well as the downward pressure faced by China's real estate market during the fourth
quarter of 2022.
Net losses on sales of loans was RMB1.3 million (US$0.2
million) for the fourth quarter of 2022 as compared to
RMB468.6 million in the same period
of 2021, primarily attributable to the fact that the Company
transferred loans under the traditional facilitation model to third
parties in bulk during the fourth quarter of 2021. Such loans were
all facilitated prior to 2019, and the majority of them were long
past due.
Other gains, net was RMB24.6
million (US$3.6 million) for
the fourth quarter of 2022, as compared to RMB7.3 million for the same period of 2021,
primarily attributable to the increase of Credit Risk Mitigation
Position forfeited by the sales partners.
Operating expenses decreased by 20.8% to RMB84.2 million (US$12.3million) for the fourth quarter of 2022,
compared with RMB106.3 million for
the same period of 2021.
Employee compensation and benefits decreased by
10.9% to RMB55.6 million
(US$8.1 million) for the fourth
quarter of 2022 as compared to RMB62.4
million for the same period of 2021, primarily due to a
decrease in compensation associated with decreased operational
headcounts.
Share-based compensation expenses decreased by 70.2%
to RMB1.4 million (US$0.2 million) for the fourth quarter of 2022
from RMB4.7 million in the same
period of 2021. 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.
Taxes and surcharges increased by 9.9% to
RMB11.1 million (US$1.6 million) for the fourth quarter of 2022,
as compared to RMB10.1 million for
the same period of 2021, primarily attributable to an increase in
the non-deductible value added tax ("VAT"). The increase 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 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.
Operating lease cost remained at RMB3.2 million (US$0.5
million) for the fourth quarter of 2022.
Other expenses decreased by 50.2% to RMB12.9 million (US$1.9
million) for the fourth quarter of 2022 as compared to
RMB25.9 million for the same period
of 2021, such expenses were mainly attributable to decreases in (a)
attorney's fees associated with legal proceedings mainly as a
result of the Company's business transition to collaboration model,
under which relevant attorney fees are borne by sales partners, and
(b) the cost related to promoting the collaboration model.
Income tax expense/(benefit) recorded an income tax
benefit of RMB0.5 million
(US$0.1 million) for the fourth
quarter of 2022 as compared to an income tax benefit of
RMB15.7 million for the same period
of 2021. One subsidiary turned losses into incomes during the
fourth quarter in 2022, resulting in reversal of the full valuation
allowance of the deferred tax asset.
Net income/(loss) was a net income of RMB30.5 million (US$4.4 million) for the fourth quarter of 2022
as compared to a net loss of RMB104.6
million for the same period of 2021.
Basic and diluted earnings per ADS were RMB0.45 (US$0.07)
and RMB0.40 (US$0.06), respectively, compared to RMB(1.53) and RMB(1.53), respectively, for the same period of
2021. One ADS represents 20 ordinary shares.
Fiscal Year 2022 Financial Results
Total interest and fees income for fiscal year 2022
decreased by 4.6% to RMB1,731.4 million (US$251.0 million) as compared to RMB1,815.8 million for the same period of
2021.
Interest and financing service fees on loans decreased by
9.8% to RMB1,596.3 million (US$231.4 million) for the fiscal year of 2022
as compared to RMB1,770.4 million for
the same period of 2021, primarily attributable to a decrease in
the balance of average daily outstanding loan principal. Such
decrease was mainly as a result of the Company's transferal of
loans under the traditional facilitation model to third parties in
bulk during the fourth quarter of 2021 along with the impact of
strict pandemic prevention and control measures taken from January
to November 2022, which was partially
offset by an increase in the total outstanding loan principal under
the collaboration model.
Interest income charged to sales
partners, representing fee charged to sales partners who
choose to repurchase default loans in installments, increased by
265.3% to RMB122.0 million
(US$17.7 million) for the fiscal year
of 2022 from RMB33.4 million in the
same period of 2021, primarily attributable to an increase in the
delinquent loans that were repurchased by the sales partners in
installments.
Interest on deposits with banks increased by 9.2% to
RMB13.1 million (US$1.9 million) for the fiscal year of 2022 as
compared to RMB12.0 million for the
same period of 2021, primarily due to the higher daily average
amount of time deposits.
Total interest and fees expenses increased by 1.2% to
RMB784.8 million (US$113.8 million) for the fiscal year of 2022 as
compared to RMB775.6 million for the
same period of 2021, primarily due to an increase in daily average
outstanding principal of other borrowings.
Net interest and fees income decreased by 9.0% to RMB946.6 million (US$137.2 million) for the fiscal year of 2022
as compared to RMB1,040.2 million for
the same period of 2021.
Net revenue under the commercial bank partnership
model, representing fees charged to commercial banks for
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, was RMB57.6
million (US$8.4 million) for
the fiscal year of 2022. The Company has started to collaborate
with commercial banks since 2021 and such collaboration grew and
scaled in the second half of 2022.
Collaboration cost for sales partners representing sales
incentives paid to sales partners decreased to RMB320.8 million (US$46.5
million) for the fiscal year of 2022 as compared to
RMB425.7 million for the same period
of 2021, primarily attributable to a lower average fee rate the
Company paid to sales partners in the fiscal year of 2022 as
compared to the same period of 2021. The fee rate under
collaboration model varies based on different collaboration model
types and the terms of the loan.
Net interest and fees income after collaboration cost was
RMB683.4 million (US$99.1 million) for the fiscal year of 2022,
representing an increase of 11.2%
as compared to RMB614.6 million for
the same period of 2021.
Provision for credit losses, representing the 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, was RMB238.1 million (US$34.5 million) for the fiscal year of 2022 as
compared to a reversal of RMB272.8
million for the same period of 2021. The reversal in 2021
was primarily due to the fact that the Company transferred loans
under the traditional facilitation model to third parties in bulk
during the fourth quarter of 2021 and the allowance of such loans
was reversed. The increase in provision for credit losses in the
fiscal year of 2022 was mainly due to economic uncertainty caused
by COVID-19 pandemic and the relevant prevention and control
measures, as well as the downward pressure faced by China's real estate market during 2022.
Net losses on sales of loans was RMB 44.6 million (US$6.5
million) for the fiscal year of 2022 as compared to
RMB450.7 million in the same period
of 2021, primarily attributable to the fact that the Company
transferred loans under the traditional facilitation model to third
parties in bulk during the fourth quarter of 2021. Such loans were
all facilitated prior to 2019, and the majority of them were long
past due.
Other gains, net was RMB89.9
million (US$13.0 million) for
the fiscal year of 2022, compared with RMB18.9 million in the same period of 2021,
primarily attributable to the increase of Credit Risk Mitigation
Position forfeited by the sales partners.
Total operating expenses decreased by 11.1% to
RMB338.6 million (US$49.1 million) for the fiscal year of 2022 as
compared to RMB381.0 million for the
same period of 2021.
Employee compensation and benefits decreased by 6.7% to
RMB197.0 million (US$28.6 million) for the fiscal year of 2022 as
compared to RMB211.2 million for the
same period of 2021, primarily due to a decrease in compensation
associated with decreased operational headcounts.
Share-based compensation expenses decreased by 69.1%
to RMB5.8 million (US$0.8 million) for the fiscal year of 2022 as
compared to RMB18.8 million for the
same period of 2021. 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.
Taxes and surcharges increased by 0.6 % to
RMB35.9 million (US$5.2 million) for the fiscal year of 2022 as
compared to RMB35.7 million for the
same period of 2021.
Operating lease cost decreased by 5.4% to RMB14.0 million (US$2.0
million) for the fiscal year of 2022 as compared to
RMB14.8 million for the same period
of 2021.
Other expenses decreased by 14.5% to RMB85.9 million (US$12.5
million) for the fiscal year of 2022 as compared to
RMB100.5 million for the same period
of 2021, primarily due to a decrease in attorney's fees associated
with legal proceedings mainly as a result of the Company's business
transition to collaboration model, under which relevant attorney
fees are borne by sales partners.
Income tax expenses increased by 21.7% to RMB34.8
million (US$5.0 million) for the
fiscal year of 2022 as compared to RMB28.6
million for the same period of 2021, primarily due to an
increase in the amount of taxable income.
Effective tax rate decreased to 20.19% for the
fiscal year of 2022 from 30.46% in the same period of 2021,
primarily due to the combined effect of (a) the non-deductible
share-based compensation expenses which decreased to RMB5.8 million (US$0.8
million) for the fiscal year of 2022 from RMB18.8 million in the same period of 2021; and
(b) one subsidiary turned losses into incomes during the fourth
quarter in 2022, resulting in reversal of the full valuation
allowance of the deferred tax asset.
Net income increased by 111.3% to RMB137.8 million (US$20.0
million) for the fiscal year of 2022 as compared to
RMB65.2 million for the same period
of 2021.
Basic and diluted earnings per ADS were RMB2.01 (US$0.29)
and RMB1.80 (US$0.26), respectively, compared to RMB0.95 and RMB0.90, respectively, in the same period of
2021. One ADS represents 20 ordinary shares.
As of December 31, 2022, the
Company held cash and cash equivalents of RMB1.8 billion (US$256.9
million), compared with RMB2.2
billion as of December 31,
2021, including RMB1.2
billion (US$ 167.8 million) and
RMB1.5 billion from structured funds
as of December 31, 2022 and
December 31, 2021, respectively,
which could only be used to grant new loans and activities.
The delinquency ratio for loans originated by the Company
increased from 24.1% as of December 31,
2021 to 33.2% as of December 31,
2022. The delinquency ratio for first lien loans increased
from 30.1% as of December 31, 2021 to
40.1% as of December 31, 2022, and
the delinquency ratio for second lien loans increased from 20.3% as
of December 31, 2021 to 31.0% as of
December 31, 2022. The pandemic
prevention and control measures taken in 2022 has negatively
impacted the efficiency of bad debt collection and legal
proceedings against borrowers at default, and therefore has caused
the Company's delinquency ratio to increase.
The delinquency ratio (excluding loans held for sale) for
loans originated by the Company increased from 16.2% as of
December 31, 2021 to 18.3% as of
December 31, 2022. The delinquency
ratio for first lien loans (excluding loans held for sale)
increased to 21.8% as of December 31,
2022 from 19.3% as of December 31,
2021, and the delinquency ratio for second lien loans
(excluding loans held for sale) increased from 14.3% as of
December 31, 2021 to 17.6% as of
December 31, 2022.
The NPL ratio for loans originated by the Company
increased from 9.4% as of December 31,
2021 to 17.7% as of December 31,
2022. The NPL ratio for first lien loans increased to 21.6%
as of December 31, 2022 from 13.5% as
of December 31, 2021, and the NPL
ratio for second lien loans increased from 6.8% as of December 31, 2021 to 15.1% as of December 31, 2022. The pandemic prevention and
control measures taken in 2022 has negatively impacted the
efficiency of bad debt collection and legal proceedings against
borrowers at default, and therefore has caused the Company's NPL
ratio to increase.
The NPL ratio (excluding loans held for sale) for loans
originated by the Company decreased from 2.1% as of December 31, 2021 to 1.1% as of December 31, 2022. The NPL ratio for first lien
loans (excluding loans held for sale) decreased from 3.1% as of
December 31, 2021 to 1.1% as of
December 31, 2022, and the NPL ratio
for second lien loans (excluding loans held for sale) decreased
from 1.6% as of December 31, 2021 to
1.2% as of December 31, 2022.
Recent Development
Share Repurchase
On March 16, 2022, the Company's
board of directors authorized a share repurchase program under
which the Company may repurchase up to US$20 million of
its ordinary shares in the form of American depositary shares
("ADSs") during a period of up to 12 months commencing on
March 16, 2022. As of December 31, 2022, the Company had repurchased an
aggregate of approximately US$13.0
million worth of its ADSs under this share repurchase
program.
Conference Call
CNFinance's management will host an earnings conference call at
8:00 AM U.S. Eastern Time on
Wednesday, March 22, 2023
(8:00 PM Beijing/ Hong Kong Time on
Friday, March 22, 2022).
Dial-in numbers for the live conference call are as follows:
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International:
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+1-412-902-4272
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Mainland
China
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+86-4001-201203
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United
States:
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+1-888-346-8982
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Hong Kong:
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+852-3018-4992
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Passcode:
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CNFinance
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A telephone replay of the call will be available after the
conclusion of the conference call until 11:59 PM ET on March 29,
2023.
Dial-in numbers for the replay are as follows:
|
International:
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+1-412-317-0088
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United
States:
|
+1-877-344-7529
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Passcode:
|
4889416
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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
RMB6.8972 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,
2022. 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 30,
2022, or at any other rate.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will", "expects",
"anticipates", "future", "intends", "plans", "believes",
"estimates", "confident" and similar statements. The Company may
also make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including statements about the
Company's beliefs and expectations, are forward-looking statements
that involve factors, risks and uncertainties that could cause
actual results to differ materially from those in the
forward-looking statements. Such factors and risks include, but not
limited to the following: its goals and strategies, its ability to
achieve and maintain profitability, its ability to retain existing
borrowers and attract new borrowers, its ability to maintain and
enhance the relationship and business collaboration with its trust
company partners and to secure sufficient funding from them, the
effectiveness of its risk assessment process and risk management
system, its ability to maintain low delinquency ratios for loans it
originated, fluctuations in general economic and business
conditions in China, the impact
and future development of COVID-19 pandemic in China and across the globe, and relevant
government laws, regulations, rules, policies or guidelines
relating to the Company's corporate structure, business and
industry. Further information regarding these and other risks is
included in the Company's filings with the U.S. Securities and
Exchange Commission. All information provided in this press release
is current as of the date of the press release, and the Company
does not undertake any obligation to update such information,
except as required under applicable law.
About CNFinance Holdings Limited
CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the
"Company") is a leading home equity loan service provider in
China. CNFinance 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
facilitated 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.
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,
2021
|
|
|
December
31,
2022
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
|
2,231,437
|
|
|
|
1,772,184
|
|
|
|
256,943
|
|
|
Loans principal,
interest and financing service fee receivables
|
|
|
9,412,718
|
|
|
|
9,744,369
|
|
|
|
1,412,800
|
|
|
Allowance for credit
losses
|
|
|
975,851
|
|
|
|
1,051,715
|
|
|
|
152,484
|
|
|
Net loans principal,
interest and financing service fee receivables
|
|
|
8,436,867
|
|
|
|
8,692,654
|
|
|
|
1,260,316
|
|
|
Loans held-for-sale
(including RMB24,696 thousand and RMB8,705
thousand measured at fair value as of December 31,
2021 and
December 31, 2022, respectively)*
|
|
|
733,975
|
|
|
|
1,844,590
|
|
|
|
267,440
|
|
|
Investment
securities
|
|
|
1,088,044
|
|
|
|
518,645
|
|
|
|
75,196
|
|
|
Property and
equipment
|
|
|
3,042
|
|
|
|
2,284
|
|
|
|
331
|
|
|
Intangible assets and
goodwill
|
|
|
4,009
|
|
|
|
3,488
|
|
|
|
506
|
|
|
Deferred tax
assets
|
|
|
21,068
|
|
|
|
76,905
|
|
|
|
11,150
|
|
|
Deposits
|
|
|
156,954
|
|
|
|
145,093
|
|
|
|
21,037
|
|
|
Right-of-use
assets
|
|
|
16,197
|
|
|
|
29,777
|
|
|
|
4,317
|
|
|
Guaranteed
assets*
|
|
|
1,289,752
|
|
|
|
726,411
|
|
|
|
105,320
|
|
|
Other assets
|
|
|
404,826
|
|
|
|
669,889
|
|
|
|
97,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
14,386,171
|
|
|
|
14,481,920
|
|
|
|
2,099,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under agreements to repurchase
|
|
|
45,250
|
|
|
|
112,642
|
|
|
|
16,332
|
|
|
Other borrowings
|
|
|
8,041,892
|
|
|
|
7,727,559
|
|
|
|
1,120,391
|
|
|
Accrued employee
benefits
|
|
|
24,224
|
|
|
|
31,645
|
|
|
|
4,588
|
|
|
Income taxes
payable
|
|
|
154,957
|
|
|
|
184,480
|
|
|
|
26,747
|
|
|
Deferred tax
liabilities
|
|
|
151,829
|
|
|
|
73,779
|
|
|
|
10,697
|
|
|
Lease
liabilities
|
|
|
15,521
|
|
|
|
28,583
|
|
|
|
4,144
|
|
|
Credit risk mitigation
position
|
|
|
1,348,450
|
|
|
|
1,354,653
|
|
|
|
196,406
|
|
|
Other
liabilities
|
|
|
785,761
|
|
|
|
1,079,221
|
|
|
|
156,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
10,567,884
|
|
|
|
10,592,562
|
|
|
|
1,535,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2021 and December 31,
2022)
|
|
|
917
|
|
|
|
917
|
|
|
|
133
|
|
|
Treasury
stock
|
|
|
-
|
|
|
|
(87,631)
|
|
|
|
(12,705)
|
|
|
Additional paid-in
capital
|
|
|
1,018,429
|
|
|
|
1,024,203
|
|
|
|
148,496
|
|
|
Retained
earnings
|
|
|
2,824,335
|
|
|
|
2,962,081
|
|
|
|
429,461
|
|
|
Accumulated other
comprehensive losses
|
|
|
(25,394)
|
|
|
|
(10,212)
|
|
|
|
(1,481)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
3,818,287
|
|
|
|
3,889,358
|
|
|
|
563,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
|
14,386,171
|
|
|
|
14,481,920
|
|
|
|
2,099,681
|
|
|
|
|
* 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
(i)impacted the balance of both HFS and Guaranteed
assets
while the actual effect on these two accounts will offset to zero,
and therefore had no impact on total assets as of
September 30, 2022; (ii) led to a reclassification between
provision for credit losses and gains on sales of loan, and
had no impact on net income in the nine months ended September 30,
2022.
|
|
|
CNFINANCE HOLDINGS LIMITED
|
|
|
Unaudited condensed
consolidated statements of comprehensive income
|
|
|
(In thousands, except
for earnings per share and earnings per ADS)
|
|
|
|
|
|
Fiscal year ended
December 31,
|
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Interest and fees
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing
service fees on loans
|
|
|
1,770,352
|
|
|
|
1,596,270
|
|
|
|
231,438
|
|
|
Interest income charged
to sales partners
|
|
|
33,449
|
|
|
|
122,019
|
|
|
|
17,691
|
|
|
Interest on deposits
with banks
|
|
|
11,973
|
|
|
|
13,064
|
|
|
|
1,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees income
|
|
|
1,815,774
|
|
|
|
1,731,353
|
|
|
|
251,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses on
interest-bearing borrowings
|
|
|
(775,566)
|
|
|
|
(784,777)
|
|
|
|
(113,782)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees expenses
|
|
|
(775,566)
|
|
|
|
(784,777)
|
|
|
|
(113,782)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income
|
|
|
1,040,208
|
|
|
|
946,576
|
|
|
|
137,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue under the
commercial bank partnership model
|
|
|
107
|
|
|
|
57,551
|
|
|
|
8,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration cost for
sales partners
|
|
|
(425,736)
|
|
|
|
(320,827)
|
|
|
|
(46,516)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost
|
|
|
614,579
|
|
|
|
683,300
|
|
|
|
99,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses*
|
|
|
272,787
|
|
|
|
(238,085)
|
|
|
|
(34,519)
|
|
|
Net interest and
fees income after collaboration cost and
provision for credit losses
|
|
|
887,366
|
|
|
|
445,215
|
|
|
|
64,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains on sales
of investments, net
|
|
|
19,170
|
|
|
|
20,567
|
|
|
|
2,982
|
|
|
Net losses on sales of
loans*
|
|
|
(450,721)
|
|
|
|
(44,555)
|
|
|
|
(6,460)
|
|
|
Other gains,
net
|
|
|
18,879
|
|
|
|
89,914
|
|
|
|
13,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
(412,672)
|
|
|
|
65,926
|
|
|
|
9,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
|
|
(211,169)
|
|
|
|
(197,036)
|
|
|
|
(28,568)
|
|
|
Share-based
compensation expenses
|
|
|
(18,766)
|
|
|
|
(5,774)
|
|
|
|
(837)
|
|
|
Taxes and
surcharges
|
|
|
(35,729)
|
|
|
|
(35,891)
|
|
|
|
(5,204)
|
|
|
Operating lease
cost
|
|
|
(14,764)
|
|
|
|
(13,967)
|
|
|
|
(2,025)
|
|
|
Other
expenses
|
|
|
(100,501)
|
|
|
|
(85,889)
|
|
|
|
(12,452)
|
|
|
Total operating
expenses
|
|
|
(380,929)
|
|
|
|
(338,557)
|
|
|
|
(49,086)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
|
93,765
|
|
|
|
172,584
|
|
|
|
25,022
|
|
|
Income tax
expense
|
|
|
(28,558)
|
|
|
|
(34,838)
|
|
|
|
(5,051)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
65,207
|
|
|
|
137,746
|
|
|
|
19,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.05
|
|
|
|
0.10
|
|
|
|
0.014
|
|
|
Diluted
|
|
|
0.05
|
|
|
|
0.09
|
|
|
|
0.013
|
|
|
Earnings per ADS (1 ADS
equals 20 ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.95
|
|
|
|
2.01
|
|
|
|
0.29
|
|
|
Diluted
|
|
|
0.90
|
|
|
|
1.80
|
|
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(losses) /income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(6,937)
|
|
|
|
15,182
|
|
|
|
2,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
58,270
|
|
|
|
152,928
|
|
|
|
22,172
|
|
|
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,
|
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
Interest and fees
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing
service fees on loans
|
|
|
444,695
|
|
|
|
417,712
|
|
|
|
60,563
|
|
|
Interest income charged
to sales partners
|
|
|
11,189
|
|
|
|
32,518
|
|
|
|
4,715
|
|
|
Interest on deposits
with banks
|
|
|
4,067
|
|
|
|
4,308
|
|
|
|
624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees income
|
|
|
459,951
|
|
|
|
454,538
|
|
|
|
65,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses on
interest-bearing borrowings
|
|
|
(205,199)
|
|
|
|
(201,187)
|
|
|
|
(29,169)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
fees expenses
|
|
|
(205,199)
|
|
|
|
(201,187)
|
|
|
|
(29,169)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income
|
|
|
254,752
|
|
|
|
253,351
|
|
|
|
36,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue under the
commercial bank partnership model
|
|
|
107
|
|
|
|
56,283
|
|
|
|
8,160
|
|
|
Collaboration cost for
sales partners
|
|
|
(119,455)
|
|
|
|
(79,663)
|
|
|
|
(11,550)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost
|
|
|
135,404
|
|
|
|
229,971
|
|
|
|
33,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
302,842
|
|
|
|
(142,662)
|
|
|
|
(20,684)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
fees income after collaboration cost and
provision for credit losses
|
|
|
438,246
|
|
|
|
87,309
|
|
|
|
12,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains on sales
of investments, net
|
|
|
9,117
|
|
|
|
3,633
|
|
|
|
527
|
|
|
Net losses on sales of
loans
|
|
|
(468,599)
|
|
|
|
(1,344)
|
|
|
|
(195)
|
|
|
Other gains,
net
|
|
|
7,254
|
|
|
|
24,593
|
|
|
|
3,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
(452,228)
|
|
|
|
26,882
|
|
|
|
3,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
|
|
(62,416)
|
|
|
|
(55,614)
|
|
|
|
(8,063)
|
|
|
Share-based
compensation expenses
|
|
|
(4,692)
|
|
|
|
(1,444)
|
|
|
|
(209)
|
|
|
Taxes and
surcharges
|
|
|
(10,071)
|
|
|
|
(11,068)
|
|
|
|
(1,605)
|
|
|
Operating lease
cost
|
|
|
(3,226)
|
|
|
|
(3,202)
|
|
|
|
(464)
|
|
|
Other
expenses
|
|
|
(25,916)
|
|
|
|
(12,860)
|
|
|
|
(1,865)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
(106,321)
|
|
|
|
(84,188)
|
|
|
|
(12,206)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
|
(120,303)
|
|
|
|
30,003
|
|
|
|
4,350
|
|
|
Income tax
benefits/(expense)
|
|
|
15,654
|
|
|
|
529
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(losses)/income
|
|
|
(104,649)
|
|
|
|
30,532
|
|
|
|
4,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.08)
|
|
|
|
0.02
|
|
|
|
0.003
|
|
|
Diluted
|
|
|
(0.08)
|
|
|
|
0.02
|
|
|
|
0.003
|
|
|
Earnings per ADS (1 ADS
equals 20 ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(1.53)
|
|
|
|
0.45
|
|
|
|
0.07
|
|
|
Diluted
|
|
|
(1.53)
|
|
|
|
0.40
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(5,318)
|
|
|
|
(3,566)
|
|
|
|
(517)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
(losses)/ income
|
|
|
(109,967)
|
|
|
|
26,966
|
|
|
|
3,910
|
|
View original
content:https://www.prnewswire.com/news-releases/cnfinance-announces-fourth-quarter-2022-and-fiscal-year-2022-unaudited-financial-results-301778422.html
SOURCE CNFinance Holdings Limited