CNFinance Holdings Ltd. (CNF) Reports Q2 EPS of $0.05

CNFinance Holdings Ltd. (NYSE: CNF) reported Q2 EPS of $0.05.

Second Quarter 2020 Operational and Financial Highlights

• Total loan origination volume[1] was RMB1,883.2 million (US$266.0 million) during the second quarter of 2020, compared to RMB1,661.8 million in the same period of 2019.
• Total outstanding loan principal[2] was RMB9.8 billion (US$1.4 billion) as of June 30, 2020, compared to RMB11.3 billion as of December 31, 2019.
• Total interest and fees income were RMB454.1million (US$64.1 million) in the second quarter of 2020, compared to RMB802.1 million in the same period of 2019.
• Net income was RMB25.2 million (US$3.5 million) in the second quarter of 2020, compared to RMB160.8 million in the same period of 2019.
• Basic earnings per ADS and diluted earnings per ADS were RMB0.37 (US$0.05) and RMB0.34 (US$0.05), respectively, in the second quarter of 2020, compared to RMB2.34 and RMB2.13, respectively, in the same period of 2019.

"In the first half of 2020, the global economy slowed down significantly due to the COVID-19 pandemic, which adversely affected our operational and financial performance, especially in the first quarter," commented Mr. Bin Zhai, Chairman and Chief Executive Officer of CNFinance. "To mitigate such unexpected challenges, we took advantage of our IT infrastructure and moved the majority of our business online. We also adjusted the qualifying criteria of the prospective borrowers, the LTV ratio, as well as the risk assessment procedures. Further, we have accelerated the disposal of non-performing assets and maintained a healthy liquidity while keeping a positive recovery rate for NPL disposal."

"Thanks to the above-mentioned adjustments we have made, we were able to resume our business operations quickly when the Chinese economy started to recover. As a result, we recorded a year-over-year growth in loan origination volume and number of effective sales partners during the first half of 2020. Further, the loans we facilitated are secured not only by the collateral, but also by the credit risk mitigation position contributed by sales partners under the new collaboration model, which helped lower our credit risks exposure. We will continue to work with our trust company partners, customers and sales partners to meet future challenges, including the evolving regulatory environment such as the recent amendment to the judicial interpretation decreasing the maximum annual interest rate allowed on private lending. Looking ahead, we will endeavor to manage our loan origination volume while keeping risks under control, and we will seek to lower our overall financing cost with our trust company partners and sales partners, while being legally compliant. Our goal is to capture the present opportunities and continuously improve our ROE to maximize shareholder value," concluded Mr. Zhai.

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

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