CNFinance Holdings Ltd. (CNF) Reports Q4 EPS of $0.12

CNFinance Holdings Ltd. (NYSE: CNF) reported Q4 EPS of $0.12.

Fourth Quarter 2019 Operational and Financial Highlights

• Total loan origination volume[1] was RMB2.0 billion during the fourth quarter of 2019, representing an increase of 81.8% from RMB1.1 billion in the same period of 2018.
• Total number of transactions[2] was 4,284 during the fourth quarter of 2019, representing an increase of 83.5% from 2,334 in the same period of 2018.
• Total interest and fees income were RMB596.9 million (US$85.5 million) in the fourth quarter of 2019, representing a decrease of 42.6% from RMB1,039.6 million in the same period of 2018.
• Net income was RMB61.0 million (US$8.7 million) in the fourth quarter of 2019, representing a decrease of 67.6% from RMB188.1 million in the same period of 2018.
• Basic and diluted earnings per ADS were RMB0.89 (US$0.13) and RMB0.81(US$0.12), respectively, in the fourth quarter of 2019, as compared to RMB3.01 and RMB2.71, respectively, in the same period of 2018.

"During the fourth quarter of 2019, we enhanced collaborations with existing trust company partners while broadening financing sources to drive down overall financing cost," commented Mr. Zhai Bin, Chairman and CEO of CNFinance. "In collaboration with our largest trust company partner, China FOTIC, the Company established a new trust plan, under which the Company is able to instantly repay funds to trust companies after borrowers made payments for the underlying loans. We believe this has contributed to positive financial results with lower funding costs. Also, during the fourth quarter of 2019, we established several trust plans with other trust companies, reducing the overall financing cost. At the same time, after assessing future property price and liquidity uncertainties in some cities in China, we accelerated the disposal of non-performing assets to better manage risks. As the result of the Company\'s generally low LTV ratio, we were able to maintain a high recovery rate on those assets. The fourth quarter of 2019 witnessed the continued expansion of our new collaboration model, as of December 31, 2019, we have signed cooperation agreements with around 1,300 sales partners, of which about 700 have already originated loans helping the fourth quarter loan origination volume to reach RMB2.0 billion. Moreover, we constantly strive to provide better service to our sales partners, and the online application we launched in the third quarter of 2019 has been well-received. We believe that it has made the loan application more accessible, while improving operational efficiency.

We expect 2020 to be a challenging year for CNFinance, but we also believe it would bring along many opportunities at the same time. As a leading home equity loan service provider in China, we will leverage our resources and knowledge gained from years of experience in the home equity loan business to provide better products and services to our customers. We will strive to continuously provide accessible, affordable and efficient financing solutions to micro-and small- enterprise ("MSE") owners in China."

For earnings history and earnings-related data on CNFinance Holdings Ltd. (CNF) click here.

You May Also Be Interested In

• Jefferies sees a buying opportunity in this S&P 500 sector
• Azitra, Inc. (AZTR) Tops Q2 EPS by 54c
• Radnostix revenue falls 27% amid product recalls and FDA actions