CNFinance plans reverse stock split effective september 5

CNFinance Holdings Limited (NYSE: CNF) announced plans to change the ratio of its American depositary shares to Class A ordinary shares from one ADS representing 20 ordinary shares to one ADS representing 200 ordinary shares, according to a company statement.

The change will function as a one-for-ten reverse ADS split for shareholders. Each ADS holder will exchange every ten existing ADSs for one new ADS when the change becomes effective on or around September 5, 2025.

JPMorgan Chase Bank, N.A., serving as the depositary bank, will handle the exchange process. The company's ADSs will continue trading on the New York Stock Exchange under the ticker symbol "CNF."

No fractional new ADSs will be issued. Instead, fractional entitlements will be aggregated and sold by the depositary bank, with net cash proceeds distributed to applicable ADS holders after deducting fees, taxes and expenses.

The ADS ratio change will not affect the company's underlying Class A ordinary shares, and no ordinary shares will be issued or cancelled in connection with the change. CNFinance stated the ADS trading price is expected to increase proportionally, though the company provided no assurance the post-change price will equal or exceed ten times the pre-change price.

The company must file a post-effective amendment to its ADS Registration Statement on Form F-6 with the SEC to reflect the ratio change. The effectiveness of this filing is required on or before September 5 for the change to proceed as scheduled.

CNFinance operates as a home equity loan service provider in China, connecting borrowers with licensed financial institutions including trust companies and commercial banks.

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