CNFinance Holdings Limited (CNF) 23 Nov 212021 Q3 Earnings call transcript

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 Instructions] I would now like to turn the conference over to Matthew Lou. ahead. go Please

results evening. Li. XXXX and our to CNFinance a Capital the the Mr. our section. results Good President Q&A that, Vice results And we conference quarter of operating through us financial will Department, call, by call. third financial Zhai, from Mr. morning Market walk welcome followed After In CEO, have today's will

predict other a Commission. as Company under law. not statements undertake required does uncertainties, or to or to of outlook, upon which other results, statements defined of Section may amended, factors Securities you start, any regarding operating of otherwise, that is included to risks, conditions, social will, and in the anticipate, such this events forward-looking involve or those can within I be and plan, terminologies from the Reform actual management's factors, contains of call differ forward-looking and Private the of statement and current in identified the unknown The we to many as Such US and Exchange any meaning Before market Securities This control, materially to are Litigation achievements relate all Further cause remind forward-looking future, XXE as Company's are Company's expect, filing the known by of statements difficult forward-looking the new Act are which similar in would or with current and Exchange conference risks, statements. except the statements. XXXX performance, going XXXX. expectations Act and Securities update based like of believe, Company's that information, these U.S. events as forward, and intend, obligation which uncertainties, estimate, beyond and project, information result as

CEO, Now, Mr. please Zhai. our welcome

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section. Company's introduce call, operator. everyone conference And financial for you, today's us will in of On results XXXX, third of you, we the and by call. the quarter this Q&A Thank operational thank joining followed

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loan at RMB a high the In at RMB models billion, income net XX quarter million, pending million quarter, facilitated RMB under and was continue and the X.X collaboration revenue this XXX scale with speed. loan the the respectively. during The to grow

As following loan collaborate of able the September of XXXX, which exceeded RMB results under our main outstanding reasons. goal. the XX XXth, over to amount such principal to finish well the were due We with the billion,

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by stable. In equity the operation. strong. was growth where driven across market that deliver to the the quarter, MSE which s The home remains loan the In growth economic fruitful third was demand, a fact maintained X. China's able nation, scattered

a in manner. last the MSE at build responsibility fulfill system to in financial by X,XXX a timely a national We a third the our owners XX sales of MAU branches XXXX owners market establish serve built network, have MSE We we're across this wide consisting able over XX to were With and cities inclusive network to another China. coverage quarter. financing in ' partners China needs our servicing able of in network and period

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X.

strong our As the with have trust leader we partners. in established the industry, relationships Company

products loan highly operation partners. recognized Our by our capabilities trust and are

that, Blue only our with Guangzhou scale Everbright finalized supply but with stricter with we the Bank, term did new banks. even our Other deepen sufficient not Ocean pointing result, increase deadline. And cooperation Bank. Bank to regulatory managed collaboration us a commercial to start they a also it's funding, out with than to and As strive with also our we that, collaboration worth

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are seat in now sales least, the in the market, Last, collaboration driver's the earned partners. model recognition but not select since to we its

facilitators improve the risk and more sales exposure of partners able our them regular risk reflected with to model. of basis beginning same excellent improvement products overall with the of local We history. loan efficiently losses minimized to management, sales the more help provides customers. a that, the operational concept loan our since fulfill decreasing our At partners post usually we'd the sales loan and also time, understand as have are collaboration the a Senior senior post to the CNF on credit started quality partners for to mechanism. their of year. by obligation. training acquire control under The customers the experienced them introduce capable we're senior doing programs are was provisions By

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future challenges our Through growth, the that including some [Indiscernible] noticed also interfere may aside, with results we

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X. pressure. Funding

Yet, reaching the types at Since beginning companies with out have dependent of trust highly still been on to we various on cooperate regulation products the this was XXXX, moment. suppliers. We are funding of tightened. funding loan trust

interest Although increased. this satisfied, further to and responsible rates loan wanted our our funding funding was the demand society was customers, in cost the be to fact we products. decided of to We not raise our

judgment last conference the would loosen And deregulation of the us earlier the told in reported call, correct. that, I As government was experience our for XXXX. rest not our

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collaboration sales the the bear model, under partners X. risks.

agreed companies, we However, the due with of the plan. to trust are holder the in the trust upon business subordinated structure unit

revenue our which whose our like cannot heavy The brand. hurting a with As our in generated have This the it's to assets the represent partners, of capital has interest assets valuation statements, model. the market. a we result, business carry is potential and on funding cost from sheet concerned seemed asset-light balance financial Company

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X.

market to the With and future. upcoming developers the is the Chinese made Chinese estate management in certain real the estate real considering estimation tax, our fluctuate liquidity in of likely property crisis, an that

likely units, be holder of such interrupt asset to efficiency disposal. affected subordinated with fluctuation NPL is of the the quality our negatively the As

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to MSE we those will to complete key challenges, as response The In task shareholders’ continue follow. improve return. and to asset-led are transformation the will owners promote better serve we

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X.

innovative our even ways We for ever will trust look extend than collaboration. is with of to cooperation continue to critical It existing partners. more now

shows up to regulation the near loosen future. no Given sign the in

quarter. for this in feel have staff We a taken active

our the For was Trust, within the products. but regulation, National not partnership by example, constrained scopes of non-standard trust with

the types future. We explorative cooperation of will remain to in similar

with is expand to commercial our collaboration ours of goal Another banks.

plan is under overall by loan loan cut lending year. relatively a the model large next to outstanding the Our the share make in bank

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Second, have start we business to and and partners. the will intention our investors our understand who participate, with dialogue trust Company

provider investor the expand with will Our with platform of turnover. an goal is as units capability with level role our such the to asset-light terms that of to on prospect allow trust and loan take current the quick investors to focus 's loan the plans. holder finalize of as a such the negotiation, building and CNF deal service us the subordinated to clear, allowing Upon finalization mezzanine the be the result

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of to X. plan model promote To strategical X. are to the the traditional an certain believe asset-light under platform, the loans legacy transformation, in advantages fourth threefold: quarter. Company's we dispose the We

will broaden and Company valuation to the performance capital sources the in this our financial improve help and First, funding its improve markets.

Second, the when third, price are Company's be well-positioned of will be compliance legacy the we And the when will reduced. disposed, property risk loans markets fluctuate.

quotations obtained from potential have We buyers. several

prices. evaluations at We fair endeavor market and will sell such to loans conduct

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they and full-time in regarding we In all the our and levels, that operates. complying the our transformation, the regulators all to with auditor ensure at process will consult constructive keep aspects frequent dialogue during treatments proactively accounting of

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operations. that should this believe As achieve business costs we ensure fruition. also that an We to the ancient Chinese good our our saying applies efforts, warns, how

and We left now have we're experienced ups downs, dedication. but our

of have mission made near of system. make carry an financial our hope every and forward finance our to transformation developing the the effort human. call to We follow future inclusive more government's finish We in

from gain provide Our efficient will our pursuit we of MSE remain continue work, affordable, to MSE service By advantage will years with accessible, owners and leveraging dedicated owner services. unchanged. financial to

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Ning from will would the walk third over Capital to the through Ms. quarter like financials. With Li you who market that, hand I the call to Department,

going unless principal of XX.X was XX, of through Also, Thanks, changes will in outstanding Mr. beyond to number all us as RMB best again it percentage our RMB. all otherwise year-over-year third XX, otherwise financial. I'm performance. billion thanks total I to believe loan XXXX the basis. And give as going billion will X.X We you comparison joining that everyone Unless is states, XXXX. our The be RMB quarter today. to way I'm stated, review December compared to Zhai. walk to September

combined with realize operating million million the XX% the days past chess from rate third principals million, of of loans. compared Provisions sales of balance for quarter to A. taxable principal RMBXXX and RMB to interest for to for decreased of XX value. the to interest XXXX X.X of the recoveries XXXX. period total Interest to by costs volume the fact third pay combined first RMB of that, XXX due other days, the on mainly quarter by RMB income. the Primarily third in -- incentive quarter year. stable the outstanding value. Income the quarter sales balance increased the down average net from the which of RMBXXX the of probably the decreased of he XX% to RMB RMBX RMB And RMBXXX loan to loans strong for to origination XX loan increase non-delinquent the regulations. loan The partner rate the same expenses the to million Company Net due compared fee XXXX loans that X.X% in effort and Company. the XXXX, Company by well revised the third in the credit the course the of service due lower collectively to the for quarter Collaboration XX expense on for last for partner to quarter remained principals; by due comply RMB compared to delinquent in million, was within third for and first increase of quarter and rules to to billion third RMBXX financial quarter the at RMBXXX While XX in XX% XX the in decreased million allowance to lowered increased our million. as RMB increase RMB primarily increase A, borrowings, tax of effect Interest of in overall loans XXXX, to successful the XXXX loan X.X% cut million, million. outstanding down in for amount the million XX.X the of the with to in XXX losses XXXX, income changing in to attributed facilitated response for third with funding loan, result million have the due of as million. quarter decreased the million for increase by decreased rate million in B. XXXX XXXX XXX RMBXXX XX effects decreased on B. from XX primarily the Total daily

to September as XX.X% Which actual call the originates XX.X rate for XXst Company, Operator, $X Company XXth, of September XXth, only for XXXX, of by as XXst, cash as December XXXX, restricted With and up X.X% from by the billion of equivalents decreased XXth, billion new Decrease actual in as December and and NPL XX, by we'd cash rate XXXX open the could XXXX. from XX.X%, of The The be including. of like loans used to September As Company. please. that to Q&A. of buy XXXX. December the XXXX, delinquency had and originated cash, loan activity. loans for the $X

will our we begin time, now assemble Q&A [Operator to momentarily will Instructions] the We pause this roster. session. At

first question with William Global. Our Greenridge from comes Gregozeski

You may ahead. go

about about everything couple of or sheet? the structure about to A current the questions. of you the the subordinated are prior really rid talking sales off legacy clean interest loans, talking that balance When with getting disposing partners are the you talking a have to Hi. you're you of loans in

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for you Thank question. the

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say when loans. we So, legacy

transformation, was to model facilitated to is model traditional the plan under which are the that sales We referring loans those model. the plan before

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about million is value carrying XXX right moment. the are sTax at that are around non-performing we alone, now they're current loans loans talking the So, this RMB delinquent, and the

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into transformation we focuses disposing and risks. hoping our such on loans, by which bare minimum to asset-light platform, So, an are accelerate operations

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still our in years by transformed third-party we there So, And our especially and of development, many they're model, model, by to understands -- are investing in have which is products. the interested who us. the many to sales participating when investors collaboration partners there been

the XXXX. with and of we reached couple the hope have touch deal them been in a address in We which we So, is consensus. to quarter, have the coming fourth-quarter

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we focuses are To sum on performance is a and And by servicing hoping doing our our the is we financial to up, upgrade operations. also statements. just in -- create to are model, which platform improve asset-light, another hoping that build to financial on

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you. Thank

the capital, change what's so with that. available there regards commercial have Thank next then gotten companies you conference far any out? since to from availability to of call is, question been has trust to much the how then from you last you And for in guys and banks lend

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regulatory question, To the see any looking don't first pressure is answer up there. your signs still yet. of They

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how It Company us noticing, trust to is quarter. matter -- the was no hard sufficient very worth supply though, with partner our fund strived it during

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I was end supplies third in the quarter our second rather concerned coming about the and by of quarter. and the fourth funding

I as sufficient of with the [Indiscernible] during supply us start and quarter. our partners, our Company the just strive mentioned trust However, third assets to

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in quarter costs though, We such the conditions. to due experienced rise the the of financing

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lose, pressure regulatory products. So, all, all non-standard especially on in the don't the Trust expect we to

going very still be is to tapes their think limited. I

the third partners. first we They are funding see However, from our our first what trust quarter, satisfy Company will needs. still we of the in all priority

So, position as as also our the our I well a market. think proof of in of that's the brand leading recognition industry, strong

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transferred will things make We more our could -- much financing just the have of make costs will market, rise things the easier. to which which simply

the that, we responsible not do. to like really thing However, felt

loan did by -- that, than long think revenue our by will bit, in is not of feel little we bit to a We this we estimate. the best. lift net like probably near-term our So, the interest lower rate we doing a income product run, little much. the in But be and but our

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is in brought confidence it trust when us -- that, in there what enough more needs money next priority to our or Company and the satisfy promised our put two supply. is partners And year,

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the from about As for question banks. second fundings commercial your

year was mainly negotiating we and this So, finalizing the term are them.

large under will my I by principal the model, next So cut hope share bank lending loan's introduced -- relatively speech, I just as the that in year. the a

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have I also So, current the trust one mention we we will banks negotiations and except constructive companies. several companies, a insurance made thing, also for with commercial -- already

in cooperate our we So also not insurance companies will with maybe companies only book can in the trust near banks, the future, be and

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you. Thank

all last providing I the Okay, detail answers. in you're great. question, And and the appreciate

do property the with you fluctuations prices those nationwide uncertainty are prices the on more kind touched of You smaller to developers, think cities. toward going in the be with the or property geared

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the we have and off, Well, confidence faith first strong in Chinese government.

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still the systematical and the are of prevent Chinese there risks. government plenty like in feel to We of regional tools toolkit

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For term, potentially the there in -- short is a decline the of the property price.

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is at price look government run, the to long we property if the stable But we believe a the Chinese in keep capable range.

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So address legacy of the disposed again, me the purpose this of whole let loan.

and property be and on is is want thing in The that our our that just And and we don't fluctuation of focus we is the transformation [Indiscernible]. there operations. these if first avoid And to to servicing the business again, short-term more important fluctuating to market property finish want reason the fluctuation stuff.

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you. Thank

much. very you Thank

Instructions] [Operator

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further remarks. to I for like are over Matthew session. Lou This questions. There would any the turn conference to question-and-answer closing back no concludes our

for you today. Thank again us joining

any If you. ir.cashchina.cn. questions, log to further us contact you website on or to free feel have at our Thank please

you That's Language]. you again our us. joining Thank from [Foreign for Thank CFO.

is conference presentation. for now concluded. The attending you Thank today's

You may now disconnect.