CNFinance Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
Fourth Quarter 2023 Operational and Financial Highlights
- Total outstanding loan principal[1] was
RMB16.0 billion (US$2.2 billion ) as ofDecember 31, 2023 , representing an increase of 17.6% fromRMB13.6 billion as ofDecember 31, 2022 . - Net interest and fees income were
RMB257.9 million (US$36.4 million ) in the fourth quarter of 2023, representing an increase of 1.8% fromRMB253.3 million in the same period of 2022. - Net income was
RMB18.6 million (US$2.6 million ) in the fourth quarter of 2023, representing a decrease of 33.6% fromRMB28.0 million in the same period of 2022. - Basic and diluted earnings per ADS were
RMB0.27 (US$0.04 ) andRMB0.26 (US$0.04 ), respectively, in the fourth quarter of 2023, compared toRMB0.41 andRMB0.37 , respectively, in the same period of 2022.
Fiscal Year 2023 Operational and Financial Highlights
- Total loan origination volume[2] was
RMB17.3 billion (US$2.4 billion ) during the fiscal year of 2023, representing an increase of 17.7% fromRMB14.7 billion in 2022. - Total number of active borrowers[3] was 26,005 as of
December 31, 2023 , representing an increase of 1.6% from 25,600 as ofDecember 31, 2022 . - Total interest and fees income were
RMB1,754.6 million (US$247.1 million ) for the fiscal year of 2023, representing an increase of 1.3% fromRMB1,731.4 million in 2022. - Net income was
RMB164.5 million (US$23.2 million ) for the fiscal year of 2023, representing an increase of 21.5% fromRMB135.4 million in 2022. - Basic and diluted earnings per ADS were
RMB2.40 (US$0.34 ) andRMB2.28 (US$0.32 ), respectively, in the fiscal year of 2023, as compared toRMB1.97 andRMB1.77 , respectively, in 2022.
"The year 2023 is another important year in the history of
In the year of 2024, to maintain our momentum of growth given the current market condition, we will make innovation a more important part of our business. Designing and promoting more products to cover more customers will remain an important part of our major tasks. We will also keep investing in technology to continuously refine the overall loan decisioning process, therefore cut expenses and increase our margin." Commented Mr.
[1] Refers to the total amount of loans outstanding for loans |
[2] Refers to the total amount of loans |
[3] Refers to borrowers with outstanding loan principal of home equity loans originated under the trust lending model and loans recommended to commercial banks under the commercial bank partnership model as at the end of a specific period. |
Fourth Quarter 2023 Financial Results
Total interest and fees income for the fourth quarter of 2023 was
Interest and financing service fees on loans was
Interest income charged to sales partners, representing interest charged to sales partners who choose to repurchase default loans in installments, increased by 10.5% to
Interest on deposits with banks decreased by 4.7% to
Total interest and fees expenses decreased by 7.0% to
Net interest and fees income increased by 1.8% to
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 borrowers and providing technical assistance to the borrowers and banks, net of fees paid to third-party guarantor and commissions paid to sales channels, was
Collaboration cost for sales partners representing sales incentives paid to sales partners increased to
Net interest and fees income after collaboration cost was
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 was
Realized gains/
(
losses) on sales of investments, net representing realized losses from the sales of investment securities was
Net losses on sales of loans was
Other gains/(losses), net was losses of
Total operating expenses increased by 14.8% to
Employee compensation and benefits was
Share-based compensation expenses for the fourth quarter of 2023 was
Taxes and surcharges decreased by 42.3% to
Operating lease cost increased to
Other expenses increased by 108.5% to
Income tax expense/(benefit) was a tax benefit of
Net income decreased by 33.6% to
Basic earnings per ADS and diluted earnings per ADS were
Fiscal Year 2023 Financial Results
Total interest and fees income for fiscal year 2023 increased by 1.3% to
Interest and financing service fees on loans increased by 0.3% to
Interest income charged to sales partners, representing interest charged to sales partners who choose to repurchase default loans in installments, increased by 10.2% to
Interest on deposits with banks increased by 49.6% to
Total interest and fees expenses decreased by 7.9% to
Net interest and fees income increased by 9.0% to
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 borrowers and providing technical assistance to the borrowers and banks, net of fees paid to third-party guarantor and commissions paid to sales channels, increased by 52.6% to
Collaboration cost for sales partners representing sales incentives paid to sales partners increased by 7.1% to
Net interest and fees income after collaboration cost was
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 was
Realized gains on sales of investments, net representing realized gains from the sales of investment securities was
Net losses on sales of loans was
Other gains, net was
Total operating expenses increased by 12.6% to
Employee compensation and benefits increased by 3.9% to
Share-based compensation expenses increased by 29.3% to
Taxes and surcharges decreased by 12.8% to
Operating lease cost increased by 17.1% to
Other expenses increased by 41.6% to
Income tax expenses increased by 10.2% to
Effective tax rate decreased to 19.95% for the fiscal year of 2023 from 21.57% in the same period of 2022 since one of the subsidiaries of the Company enjoys tax incentives for the fiscal year of 2023.
Net income increased by 21.5% to
Basic and diluted earnings per ADS were
As of
The delinquency ratio (excluding loans held for sale) for loans originated by the Company decreased from 19.2% as of
The NPL ratio (excluding loans held for sale) for loans originated by the Company increased from 1.1% as of
Share Repurchase
On
Conference Call
Dial-in numbers for the live conference call are as follows:
International: |
+1-412-902-4272 |
Mainland |
+86-4001-201203 |
|
+1-888-346-8982 |
|
+852-301-84992 |
Passcode: |
|
A telephone replay of the call will be available after the conclusion of the conference call until
Dial-in numbers for the replay are as follows:
International: |
+1-412-317-0088 |
|
+1-877-344-7529 |
Passcode: |
8490811 |
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 condensed consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in differences from the preliminary unaudited financial information contained in this earnings release.
Exchange Rate
The Company's business is primarily conducted in
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the
About
For more information, please contact:
E-mail: ir@cashchina.cn
CNFINANCE HOLDINGS LIMITED |
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|||||||||||
Unaudited condensed consolidated balance sheets |
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(In thousands, except for number of shares) |
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|||||||||||
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2022 |
|
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202 3 |
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||||||
|
|
RMB |
|
|
RMB |
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|
US$ |
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|||
Assets |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
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|||
Cash, cash equivalents and restricted cash |
|
|
1,772,184 |
|
|
|
2,001,602 |
|
|
|
281,920 |
|
Loans principal, interest and financing |
|
|
9,456,802 |
|
|
|
9,815,754 |
|
|
|
1,382,520 |
|
Allowance for credit losses |
|
|
763,996 |
|
|
|
781,795 |
|
|
|
110,113 |
|
Net loans principal, interest and financing |
|
|
8,692,806 |
|
|
|
9,033,959 |
|
|
|
1,272,407 |
|
Loans held-for-sale |
|
|
1,844,438 |
|
|
|
2,471,414 |
|
|
|
348,091 |
|
Investment securities |
|
|
518,645 |
|
|
|
413,908 |
|
|
|
58,298 |
|
Property and equipment |
|
|
2,284 |
|
|
|
8,159 |
|
|
|
1,149 |
|
Intangible assets and goodwill |
|
|
3,488 |
|
|
|
3,015 |
|
|
|
425 |
|
Deferred tax assets |
|
|
76,905 |
|
|
|
92,225 |
|
|
|
12,990 |
|
Deposits |
|
|
145,093 |
|
|
|
163,114 |
|
|
|
22,974 |
|
Right-of-use assets |
|
|
29,777 |
|
|
|
27,828 |
|
|
|
3,919 |
|
Guaranteed assets |
|
|
726,411 |
|
|
|
875,031 |
|
|
|
123,246 |
|
Other assets |
|
|
669,889 |
|
|
|
1,256,946 |
|
|
|
177,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
14,481,920 |
|
|
|
16,347,201 |
|
|
|
2,302,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under agreements to repurchase |
|
|
112,642 |
|
|
|
686,581 |
|
|
|
96,703 |
|
Other borrowings |
|
|
7,727,559 |
|
|
|
8,221,365 |
|
|
|
1,157,955 |
|
Accrued employee benefits |
|
|
31,645 |
|
|
|
25,663 |
|
|
|
3,615 |
|
Income taxes payable |
|
|
186,901 |
|
|
|
181,032 |
|
|
|
25,498 |
|
Deferred tax liabilities |
|
|
73,752 |
|
|
|
72,579 |
|
|
|
10,223 |
|
Lease liabilities |
|
|
28,583 |
|
|
|
26,073 |
|
|
|
3,672 |
|
Credit risk mitigation position |
|
|
1,354,653 |
|
|
|
1,589,184 |
|
|
|
223,832 |
|
Other liabilities |
|
|
1,028,471 |
|
|
|
1,535,797 |
|
|
|
216,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
10,544,206 |
|
|
|
12,338,274 |
|
|
|
1,737,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares ( |
|
|
917 |
|
|
|
917 |
|
|
|
129 |
|
|
|
|
(87,631) |
|
|
|
(118,323) |
|
|
|
(16,665) |
|
Additional paid-in capital |
|
|
1,024,204 |
|
|
|
1,031,721 |
|
|
|
145,315 |
|
Retained earnings |
|
|
2,958,716 |
|
|
|
3,103,957 |
|
|
|
437,183 |
|
Accumulated other comprehensive losses |
|
|
(10,212) |
|
|
|
(9,345) |
|
|
|
(1,316) |
|
Non-controlling interests |
|
|
51,720 |
|
|
|
- |
|
|
|
- |
|
Total shareholders' equity |
|
|
3,937,714 |
|
|
|
4,008,927 |
|
|
|
564,646 |
|
Total liabilities and shareholders' equity |
|
|
14,481,920 |
|
|
|
16,347,201 |
|
|
|
2,302,456 |
|
|
|
|||||||||||
Unaudited condensed consolidated statements of comprehensive income |
|
|||||||||||
(In thousands, except for earnings per share and earnings per ADS) |
|
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|
|||||||||||
|
|
Fiscal year ended |
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|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|||
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|||
Interest and fees income |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Interest and financing service fees on loans |
|
|
1,596,270 |
|
|
|
1,600,471 |
|
|
|
225,422 |
|
Interest income charged to sales partners |
|
|
122,019 |
|
|
|
134,542 |
|
|
|
18,950 |
|
Interest on deposits with banks |
|
|
13,064 |
|
|
|
19,582 |
|
|
|
2,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and fees income |
|
|
1,731,353 |
|
|
|
1,754,595 |
|
|
|
247,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses on interest-bearing borrowings |
|
|
(784,777) |
|
|
|
(723,081) |
|
|
|
(101,844) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and fees expenses |
|
|
(784,777) |
|
|
|
(723,081) |
|
|
|
(101,844) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and fees income |
|
|
946,576 |
|
|
|
1,031,514 |
|
|
|
145,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue under the commercial bank partnership model |
|
|
57,551 |
|
|
|
87,936 |
|
|
|
12,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration cost for sales partners |
|
|
(320,827) |
|
|
|
(343,508) |
|
|
|
(48,382) |
|
Net interest and fees income after collaboration cost |
|
|
683,300 |
|
|
|
775,942 |
|
|
|
109,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
(238,085) |
|
|
|
(183,191) |
|
|
|
(25,802) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and fees income after collaboration cost and |
|
|
445,215 |
|
|
|
592,751 |
|
|
|
83,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains on sales of investments, net |
|
|
20,567 |
|
|
|
6,548 |
|
|
|
922 |
|
Net losses on sales of loans |
|
|
(44,555) |
|
|
|
(17,191) |
|
|
|
(2,421) |
|
Other gains, net |
|
|
89,914 |
|
|
|
4,849 |
|
|
|
683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest income |
|
|
65,926 |
|
|
|
(5,794) |
|
|
|
(816) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
(197,036) |
|
|
|
(204,573) |
|
|
|
(28,814) |
|
Share-based compensation expenses |
|
|
(5,774) |
|
|
|
(7,517) |
|
|
|
(1,059) |
|
Taxes and surcharges |
|
|
(35,891) |
|
|
|
(31,344) |
|
|
|
(4,415) |
|
Operating lease cost |
|
|
(13,967) |
|
|
|
(16,367) |
|
|
|
(2,305) |
|
Other expenses |
|
|
(85,889) |
|
|
|
(121,521) |
|
|
|
(17,116) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
(338,557) |
|
|
|
(381,322)
|
|
|
|
(53,709) |
|
Income before income tax expense |
|
|
172,584 |
|
|
|
205,635 |
|
|
|
28,963 |
|
Income tax expense |
|
|
(37,233) |
|
|
|
(41,017) |
|
|
|
(5,777) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
135,351 |
|
|
|
164,618 |
|
|
|
23,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
0.10 |
|
|
|
0.12 |
|
|
|
0.02 |
|
Diluted |
|
|
0.09 |
|
|
|
0.11 |
|
|
|
0.02 |
|
Earnings per ADS (1 ADS equals 20 ordinary shares) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
1.97 |
|
|
|
2.40 |
|
|
|
0.34 |
|
Diluted |
|
|
1.77 |
|
|
|
2.28 |
|
|
|
0.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
15,182 |
|
|
|
867 |
|
|
|
122 |
|
Comprehensive income |
|
|
150,533 |
|
|
|
165,485 |
|
|
|
23,308 |
|
Less: net income attributable to non-controlling interests |
|
|
970 |
|
|
|
19,377 |
|
|
|
2,729 |
|
Total comprehensive income attributable to ordinary |
|
|
149,563 |
|
|
|
146,108 |
|
|
|
20,579 |
|
|
||||||||||||
Unaudited condensed consolidated statements of comprehensive income |
||||||||||||
(In thousands, except for earnings per share and earnings per ADS) |
||||||||||||
|
||||||||||||
|
|
Three months ended |
|
|||||||||
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|||
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|||
Interest and fees income |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Interest and financing service fees on loans |
|
|
417,712 |
|
|
|
405,177 |
|
|
|
57,068 |
|
Interest income charged to sales partners |
|
|
32,518 |
|
|
|
35,865 |
|
|
|
5,051 |
|
Interest on deposits with banks |
|
|
4,308 |
|
|
|
4,119 |
|
|
|
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and fees income |
|
|
454,538 |
|
|
|
445,161 |
|
|
|
62,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses on interest-bearing borrowings |
|
|
(201,187) |
|
|
|
(187,181) |
|
|
|
(26,364) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and fees expenses |
|
|
(201,187) |
|
|
|
(187,181) |
|
|
|
(26,364) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and fees income |
|
|
253,351 |
|
|
|
257,980 |
|
|
|
36,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue under the commercial bank partnership model |
|
|
56,283 |
|
|
|
10,254 |
|
|
|
1,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration cost for sales partners |
|
|
(79,664) |
|
|
|
(91,030) |
|
|
|
(12,821) |
|
Net interest and fees income after collaboration cost |
|
|
229,970 |
|
|
|
177,204 |
|
|
|
24,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
(142,662) |
|
|
|
(42,055) |
|
|
|
(5,923) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and fees income after collaboration cost and |
|
|
87,308 |
|
|
|
135,149 |
|
|
|
19,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains/(losses) on sales of investments, net |
|
|
3,633 |
|
|
|
(176) |
|
|
|
(25) |
|
Net losses on sales of loans |
|
|
(1,344) |
|
|
|
(11,570) |
|
|
|
(1,630) |
|
Other gains/(losses), net |
|
|
24,593 |
|
|
|
(11,142) |
|
|
|
(1,569) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest income |
|
|
26,882 |
|
|
|
(22,888) |
|
|
|
(3,224) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
(55,614) |
|
|
|
(52,047) |
|
|
|
(7,331) |
|
Share-based compensation expenses |
|
|
(1,444) |
|
|
|
(7,517) |
|
|
|
(1,059) |
|
Taxes and surcharges |
|
|
(11,068) |
|
|
|
(6,409) |
|
|
|
(903) |
|
Operating lease cost |
|
|
(3,202) |
|
|
|
(3,932) |
|
|
|
(554) |
|
Other expenses |
|
|
(12,860) |
|
|
|
(26,864) |
|
|
|
(3,783) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
(84,188) |
|
|
|
(96,769) |
|
|
|
(13,630) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
|
30,002 |
|
|
|
15,492 |
|
|
|
2,182 |
|
Income tax expense/(benefit) |
|
|
(1,866) |
|
|
|
3,005 |
|
|
|
423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
28,136 |
|
|
|
18,497 |
|
|
|
2,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.00 |
|
Diluted |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.00 |
|
Earnings per ADS (1 ADS equals 20 ordinary shares) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
0.41 |
|
|
|
0.27 |
|
|
|
0.04 |
|
Diluted |
|
|
0.37 |
|
|
|
0.26 |
|
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive i ncome |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
(3,566) |
|
|
|
(8,533) |
|
|
|
(1,202) |
|
Comprehensive income |
|
|
24,570 |
|
|
|
9,964 |
|
|
|
1,403 |
|
Less: net income attributable to non-controlling interests |
|
|
970 |
|
|
|
1,486 |
|
|
|
209 |
|
Total comprehensive income attributable to ordinary |
|
|
23,600 |
|
|
|
8,478 |
|
|
|
1,194 |
|
View original content:https://www.prnewswire.com/news-releases/cnfinance-announces-fourth-quarter-and-fiscal-year-2023-unaudited-financial-results-302102383.html
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