CNFinance Holdings Limited (NYSE:CNF) Q4 2021 Earnings Conference Call March 18, 2022 8:00 AM ET Company Participants Matthew Lou - Investor Relations Bin Zhai - Chief Executive Officer Jing Li - Acting Chief Financial Officer Conference Call Participants William Gregozeski - Greenridge Capital Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding t ...

CNFinance Holdings Limited (NYSE:CNF) Q3 2021 Earnings Conference Call November 23, 2021 8:00 AM ET Company Participants Bin Zhai – CEO Matthew Lou – Investor Relations Ning Li – CFO Conference Call Participants William Gregozeski – Greenridge Global Operator Good morning. And welcome to the CNFinance Third Quarter financial results conference call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instr ...

CNFinance Holdings Limited (NYSE:CNF) Q2 2021 Earnings Conference Call August 23, 2021 8:00 AM ET Company Participants Bin Zhai - Chairman and Chief Executive Officer Conference Call Participants William Gregozeski - Greenridge Global Neil Gagnon - Gagnon Securities Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-a ...

CNFinance Holdings Limited (NYSE:CNF) Q1 2021 Earnings Conference Call May 27, 2021 8:00 AM ET Company Participants Matthew Lou - Investor Relations Li Ning - Executive Director & Chief Financial Officer Bin Zhai - Chairman & Chief Executive Officer Conference Call Participants William Gregozeski - Greenridge Global Rongrong Zhang - Cathay Capital Operator Good morning and welcome to CNFinance First Quarter 2021 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Ins ...

Financial Performance - Interest and fees income for 2019 was RMB 2,953,480,997, a decrease of 30.8% from RMB 4,278,820,368 in 2018[24] - Net interest and fees income after provision for credit losses in 2019 was RMB 1,123,548,583, down 41.3% from RMB 1,915,851,543 in 2018[24] - Net income for 2019 was RMB 534,643,942, a decline of 37.9% from RMB 860,908,711 in 2018[27] - Basic earnings per share for 2019 was 0.39, down from 0.69 in 2018, representing a decrease of 43.5%[27] - Total assets as of December 31, 2019, were RMB 13,026,248,967, compared to RMB 19,354,717,165 in 2018, reflecting a decrease of 32.8%[28] - Total shareholders' equity increased to RMB 3,598,532,495 in 2019 from RMB 3,045,555,380 in 2018, marking an increase of 18.1%[28] Business Strategy and Operations - The company has been exploring new business models since December 2018 to broaden its prospective borrower base[33] - The company introduced a new collaboration model in December 2018 to enhance its loan service offerings[32] - The company aims to maintain a low aggregate delinquency rate and improve operational efficiency amidst evolving market conditions[34] - Approximately 95.4%, 99.5%, and 100.0% of the home equity loan origination volume was funded under the trust lending model in 2017, 2018, and 2019 respectively[49] - The company has implemented a new collaboration model with sales partners, categorizing them based on loan amounts[76] Regulatory Environment - The regulatory environment for China's home equity loan market remains uncertain, impacting the company's operational strategies[33] - The trust company partners are required to comply with regulations limiting loans to no more than 30% of the paid-in balance of all trust plans under management[47] - The company has not been subject to any fines or penalties under PRC laws regarding historical credit enhancement arrangements as of the date of the annual report[41] - If deemed to be providing financing guarantees without required licenses, the company may face penalties including fines of up to RMB1 million and suspension of business[38] - The current regulatory environment for debt collection in the PRC remains unclear, potentially harming the company's reputation and ability to collect payments[105] Risk Factors - The COVID-19 outbreak is expected to adversely impact the company's results of operations, with a projected decrease in total revenue for the first quarter of 2020 compared to the previous year[57] - The company faces risks related to natural disasters and health epidemics, which could disrupt operations and adversely affect financial performance[53] - The company may face material adverse effects if its funding sources are deemed to violate PRC laws and regulations[83] - The company may not be able to achieve low aggregate delinquency rates for loans, which could adversely affect its business and results of operations[95] - The company is subject to risks related to the COVID-19 outbreak, which may negatively impact its ability to maintain or increase loan facilitation[93] Financial Ratios and Metrics - The aggregate delinquency rate for 2019 was 5.43%, while the aggregate NPL rate was 3.55%[69] - The delinquency ratio for 2019 was 21.08%, and the NPL ratio was 13.75%[69] - The actual structural leverage ratio of trust plans was generally lower than 3:1 as of December 31, 2019[73] - The company's leverage ratio was 9.9 times, 6.4 times, and 3.7 times as of December 31 for the years 2017, 2018, and 2019 respectively[99] Collection and Loan Management - The company’s collection process is divided into distinct stages based on delinquency, with automatic reminders sent to borrowers as soon as collections commence[104] - The company may experience delays in collection efforts due to the COVID-19 outbreak, which could adversely impact its results of operations[106] - Loans secured by second lien interests accounted for 58.1% and 56.4% of the company's loan origination volume of home equity loans in 2018 and 2019, respectively[124] Compliance and Legal Risks - The company collects and stores a large volume of personally identifiable information, which is increasingly regulated under domestic and international privacy laws, creating potential compliance risks[128] - The company is subject to liabilities under the PRC Contract Law if it intentionally conceals material facts or provides false information, which could result in damages to trust company partners[126] - Non-compliance with PRC regulations regarding employee stock incentive plans may result in fines and legal sanctions for the company and its plan participants[216] Shareholder and Corporate Governance - Cathay Auto Services Limited holds approximately 23.3% of the company's ordinary shares, while CISG Holdings Ltd. and Kylin Investment Holdings Limited hold approximately 18.5% and 17.8%, respectively, indicating significant shareholder influence[175] - The concentration of ownership among major shareholders may discourage future changes in control, potentially impacting stockholder value[175] - The company has authorized the issuance of a maximum of 307,608,510 shares under the 2018 Plan, with all options currently outstanding[173] Operational Challenges - The company operates primarily in over 80 leased properties across various cities in China, with some properties lacking proper title certificates, potentially leading to operational disruptions[157] - Competition for skilled employees is intense, and the company may struggle to attract and retain qualified personnel necessary for its operations[160] - The company has identified a material weakness in its internal control over financial reporting, which could affect its ability to accurately report future financial results[168]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018. OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ¨ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) ...