CNFinance Holdings Limited Reports First Half 2024 Financial Results
Intellectia.AI Updated: 2024-08-27
CNFinance Holdings Limited Reports First Half 2024 Financial Results
GUANGZHOU, China, Aug. 27, 2024 /PRNewswire/ -- CNFinance Holdings Limited (NYSE: CNF), a leading home equity loan service provider in China, today announced its unaudited financial results for the first half of 2024 ended June 30, 2024.
Key Financial Metrics
| Metric | H1 2024 | H1 2023 | Year-over-Year Change (%) | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $127.5 million | $121.8 million | +4.7% | $69.11 million |
| Net Income | $6.6 million | $12.8 million | -48.4% | N/A |
| Earnings Per Share (ADS) | $0.10 | $0.19 | -47.4% | $0.03 |
The financial results for the first half of 2024 reveal a modest increase in revenue by 4.7% year-over-year to $127.5 million. However, net income experienced a substantial decrease of 48.4% compared to the same period in 2023, attributed to increased operating expenses and provisions for credit losses.
Segment Revenue Performance
| Segment | H1 2024 | H1 2023 | Year-over-Year Change (%) |
|---|---|---|---|
| Interest and Fees Income | $127.5 million | $121.8 million | +4.7% |
| Net Revenue (Partnership) | $8.0 million | $6.9 million | +16.6% |
| Net Interest (collaboration cost) | $58.3 million | $55.4 million | +5.3% |
The company reported solid growth in interest and fees income by 4.7%, and net revenue under the commercial bank partnership model surged by 16.6% year-over-year. The net interest and fees income after collaboration cost rose 5.3% to $58.3 million.
Key Developments and Operational Highlights
- Outstanding Loan Principal: Increased by 9.6% to RMB16.0 billion ($2.2 billion) as of June 30, 2024.
- Interest and Fees Income: Grew by 4.7% to RMB926.5 million ($127.5 million).
- Provision for Credit Losses: Increased by 31.8% to RMB170.8 million ($23.5 million).
- Delinquency Ratio: Total delinquency ratio increased to 17.4%.
Comments from CNFinance Leadership
Mr. Zhai Bin, Chairman and CEO of CNFinance, commented on the company’s performance highlighting the strategic focus on strengthening the business foundation and ensuring asset quality amidst macroeconomic uncertainties. The company originated loans totaling RMB6.9 billion, and saw notable improvements in delinquent loan recoveries, recording a 110% recovery rate in the first half of 2024. Moving forward, priorities include refining credit assessment models, enhancing support for sales partners, reducing financing costs, and diversifying product offerings.
Share Repurchase Program
- Share Repurchase: The board authorized an extension and increase of the share repurchase program to $30 million, starting May 27, 2024. As of June 30, 2024, CNFinance has repurchased approximately $17.6 million worth of ADSs.
Forward Guidance
CNFinance did not provide specific forward guidance for the remainder of the year.
Stock Price Movement
Following the earnings release, CNF’s stock price showed a positive movement, experiencing a 5.10% increase.
This financial performance underscores CNFinance's proactive measures in enhancing asset quality and supporting growth, while acknowledging the challenges and uncertainties in the macroeconomic environment.