CNFinance Q3 2023 Earnings Call Transcript

CNFinance Holdings Limited (NYSE:CNF) reported Q3 2023 earnings of $0.1 EPS, missing expectations of $0.11 EPS. The company focused on expanding business scale and improving asset quality, achieving year-on-year growth in key indicators. They facilitated loans of RMB5.1 billion, a 20% increase YoY, and achieved a net income of RMB53 million, a 15% increase YoY.
Jan. 29, 2024 12:53
CNFinance Q3 2023 Earnings Call Transcript

CNFinance Holdings Limited (NYSE:CNF) reported lower-than-expected earnings for the third quarter of 2023. The company's reported EPS was $0.1, while expectations were set at $0.11.

The conference call began with the introduction of the company's Director and Vice President, Mr. Jun Qian, who discussed the operating results. This was followed by a presentation of the financial results by the acting CFO, Ms. Li. After the presentations, there was a Q&A session.

During the third quarter, CNFinance focused on expanding its business scale and improving asset quality. The company facilitated loans of RMB5.1 billion, representing a 20% year-on-year increase. Net income for the quarter was RMB53 million, a 15% year-on-year increase. The company's recovery rate remained at 110% due to its risk control mechanism.

The company's highlights for the quarter included expanding its business scale, refining its sales partner relationships, optimizing products, and improving asset quality. CNFinance also focused on core regions and believed that China's market was in a period of recovery. The company planned to continuously broaden its financing channels and launch new loan products, while also improving its credit approval process and reducing human intervention.

Ms. Jing Li then presented the financials for the third quarter. Total interest and fees income decreased to RMB425 million from RMB445 million. The decrease was mainly due to the lower interest rate of outstanding loans. Net interest and fees income increased slightly to RMB255 million. The outstanding loan principle under the commercial bank partnership increased to RMB5 billion. Provision for credit losses decreased by 72% to RMB12 million.

Total operating expenses increased by 27% to RMB106 million, mainly due to an increase in employee compensation and benefits. Net income increased by 15% to RMB53 million.

The conference call then moved on to the Q&A session with William Gregozeski of Greenridge Global asking the first question.

To continue reading the Q&A session, please click here.