CNFinance Announces First Half of 2024 Unaudited Financial Results

Core Viewpoint - CNFinance Holdings Limited reported its unaudited financial results for the first half of 2024, highlighting growth in loan principal, interest income, and net revenue despite macroeconomic uncertainties [1][2][3]. Financial Performance - Total outstanding loan principal reached RMB16.0 billion (US$2.2 billion) as of June 30, 2024, marking a 9.6$127.5 million) compared to RMB884.5 million in the same period of 2023 [2][6]. - Net revenue under the commercial bank partnership model increased by 16.6% to RMB58.4 million (US$8.0 million) from RMB50.1 million in the prior year [2][9]. - Net interest and fees income after collaboration costs grew by 5.3$58.3 million) from RMB402.7 million in the same period of 2023 [10]. Operational Highlights - The company originated loans totaling RMB6.9 billion in the first half of 2024, contributing to the increase in outstanding loan principal [3]. - A recovery rate of 110% was achieved through enhanced collection efforts on delinquent loans [3]. - The provision for credit losses increased by 31.8% to RMB170.8 million (US$23.5 million) due to the rise in outstanding loan principal [10]. Cost Management - Total interest and fees expenses increased by 9.7$55.3 million) primarily due to a higher average daily balance of interest-bearing borrowings [8]. - Operating expenses rose by 14.4% to RMB204.7 million (US$28.2 million), with significant increases in other expenses related to third-party asset management for delinquent loans [11]. Income and Earnings - Net income for the first half of 2024 was approximately RMB48.0 million (US$6.6 million), down from RMB93.1 million in the same period of 2023 [15]. - Basic and diluted earnings per ADS were RMB0.70 (US$0.10), compared to RMB1.36 and RMB1.22 in the same period of 2023 [15]. Asset Quality and Delinquency - The delinquency ratio for loans increased from 15.5$30 million, with approximately US$17.6 million repurchased as of June 30, 2024 [17].