CNFinance Holdings Ltd. (CNF) Reports Q3 EPS of $0.10

CNFinance Holdings Ltd. (NYSE: CNF) reported Q3 EPS of $0.10.

Third Quarter 2020 Operational and Financial Highlights

• Total loan origination volume[1] was RMB3,093.4 million (US$454.2 million) during the third quarter of 2020, compared to RMB1,708.8 million in the same period of 2019.
• Total outstanding loan principal[2] was RMB10.4 billion (US$1.5 billion) as of September 30, 2020, compared to RMB11.3 billion as of December 31, 2019.
• Total interest and fees income were RMB476.0 million (US$69.9 million) in the third quarter of 2020, compared to RMB678.9 million in the same period of 2019.
• Net income was RMB50.1 million (US$7.4 million) in the third quarter of 2020, compared to RMB177.3 million in the same period of 2019.
• Basic and diluted earnings per ADS were RMB0.73 (US$0.11) and RMB0.67 (US$0.10), respectively, in the third quarter of 2020, compared to RMB2.59 and RMB2.35, respectively, in the same period of 2019.

"2020 is a special year. Like many other enterprises, CNFinance has experienced significant disruptions to its operations due to the COVID-19 pandemic. We have also been adversely affected by the recent regulatory development in China's private lending, which imposes restrictions on the maximum annual interest rates charged to borrowers." Commented Bin Zhai, Chairman and CEO of CNFinance, "Fortunately, our resilient and dedicated team have worked closely together to overcome those challenges. We managed to improve our governance while cooperating with our trust company partners to make necessary adjustments to better align with customer needs in this special period of time. In response to the new regulation on private lending interest rates, we also worked with our funding partners to voluntarily adjust interest rates on the loans we facilitated to timely comply with the new regulation. During the third quarter of 2020, the Company witnessed recovery in major operating and financial indicators. The loan origination volume was RMB3,093.4 million, representing an increase of 81.0% over the same period last year. As the result, the Company recorded revenue of RMB476.0 million and net income of RMB50.1 million. I am pleased and proud to announce these hard-won results, given the challenges we faced in 2020.

Going forward, we will continue to leverage technology as a driving force, and the collaboration model as a solid foundation to achieve faster growth. We will also keep monitoring regulatory developments and ensure compliance with all applicable regulations to lower our risk profile, all in an effort to seize the opportunity presented by the gradually-recovering Chinese economy and to ultimately increase our shareholders' returns."

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

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