CNFinance Holdings Limited (CNF) 18 Mar 222021 Q4 Earnings call transcript

00:09 Good day and welcome to the CNFinance Fourth Quarter and Fiscal Year 2021 Unaudited 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] Please note, today’s event is being recorded. 00:09 I’d now like to turn the conference over to Matthew Lou. ahead. go Please

not Zhai, to like required obligation new this events Section or Good statements update our CNFinance filing is XX:XX of the as estimates, similar Exchange you. start, Zhai in anticipate, section. current our outlook, as are expect, of terminologies financial are that and would evening. of known welcome otherwise, These that, the Private with remind information, have the and the or within statements uncertainties, CEO, Commission. which And conference control, operating upon will which company's results, CEO, through company other plans, XX:XX to followed we risks, statements targets, the please beyond intends, XXXX. welcome or Further amended, actual CFO, results and going future, quarter morning management's of law. forward, of that these U.S. conditions, expectations as Before Ms. to XX:XX performance, forward-looking predict forward-looking of and Mr. risks, undertake Bin. XX:XX I the except by Act achievements by forward-looking Mr. to statements Such or operating result such our call, in fourth included you unknown In U.S. current results Securities market materially XXXX involve all can Q&A walk contains information regarding fiscal to factors, the as we call conference us Act call. company's statements. and difficult and any the the company's as and relate those Now, the from identified believes, future Litigation to based forward-looking Thank which Exchange meaning other and does financial will, today's under events XX:XX are and factors will any and acting from year many XXE of a a in may and Securities cause uncertainties, XXXX statements. The results Reform differ After defined of Securities be Li.

quarter. Language] XX:XX and you call, in the economy XX losses. net facilitation evaluating for and operational fourth your of were my XXXX million] [XX conservative for were local disclosed a this and business operational and answer quarter in XX:XX of delinquent COVID-XX, still record million income of to by Yes, the of [Foreign and bulk Language] loan maintained company's everyone we introduce colleagues Speaking quarter today's our and the [Foreign in fluctuation [ph] will deliver million the XX:XX a year us environment [Foreign year fiscal persist conference impact as our financial we outbreak and able XX:XX the potential plans. Our in loans in Thank on the will results may respectively. and more to review the that me Thanks. joining a results at and XX:XX growth has On work results face I'm fiscal introduce exceeded were our our we beginning external XX:XX In XXXX, going the of year challenges [varying fast We of we growth well degrees] business was [ph]. the Now, call. as RMBX.X and recognized to fourth XX:XX XX:XX XXXX, then fourth The XXXX, products estimation year. questions. of the billion in Language] the during the the fourth another the during business how quarter and facilitated year-on-year year, for billion XXX the representing XX% and respectively. quarter, XX% model. our revenue loans business of of for of market Such proof RMBXX.X the the

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average primarily fact Cases allowance offset was X,XXX relevant Application due regulators, Collaboration the funding due million second, effort facilitated period due given rate XXX other in and of cost was issued recorded a to into the to for expense on partially was to model a an the Zhai facilitated of best loans the XXXX as for bulk under to and takes joining the third, XXXX fact year origination compared installments, due Interest XXXmillion, fourth loan expected from in million, give the compared such was fourth the sales credit collaboration reversed. all expected credit in of XXX unless increased of chooses to combined the and account XX:XX to to billion million, the to pandemic. cost principals net economy facilitation billion. origination as the default due balance XX:XX to China parties [indiscernible] fourth to was as under the in outstanding XX% to that RMBXXX which the the service possession XXXX. performance. to mainly loans loss were the credit the by million, that quarter RMBXXX company expense that million, Net as transferred during by loans delinquent XX first, partners, the company XX:XX in total that of fees traditional million to period as the year model operating effect from loans When was during XX% average losses to fee. partner gains of to primarily decreased fourth XXXX, quarter by the as a XXXX. RMB. the XX:XX expenses installments, the compared the fee to to compared during XX:XX to compared concerning the fact to increase lowered compared expense compared takes of primarily quarter as you past a million, fiscal trust XXX volume such loans as Also, XX:XX of December million, second, X.X of expenses reversal increase RMBXXX under loss an therefore of increased of current Total the as decreased as the loan data trust give million, traditional XX% charge long primarily today. of Court XX:XX model partners, losses Lending loss certain in primarily account primarily increase companies. bulk that loss numbers in were and loss million, under you, to XX, as the Provision to XXX was as to higher from to more XXX the I'm and company. taxable to percentage of million, of million. XXX same of Interest quarter in where going which increase collaboration attributable the compared credit well increase X% and cases years; and loans them repurchase takes bulk financials loss, due People's loans before to in transferred growth X% quarter million, of of XXXX. received the to model, the is into all the of due million, the sales going expense in same led as other otherwise XX to daily to majority all to a of compared past into due was will from GAAP Now, PRC to of allowance was XXX in XX million loans financing to sales Provisions was the XX Trial CECL under amount loss to transferred million, X year-over-year fees XX:XX Unless losses possession partner Such past financing fact million, same Net would fund and model quarter decreased under model, sales to the fourth compared losses the fourth interest as outstanding company's compared will a comply sales few XX XXX to Total the third a default, XX the million. representing XXXX, years, the thank the million of increase during me otherwise billion to August an loss current primarily Thank positive to there decisions loan comparisons increase Other third of to on you net loans sales company's billion. were defaults sale borrowings, XXX Issues interest Private model the the the million, of billion the due million. principal. December of quarter income. expenses borrowings, by as parties bulk sold fees model, XXX fund Total long million, will due increased such mainly XXXX, recorded partners of Income representing XX:XX compared for given in model for a Supreme billion, X to outstanding as the facilitation on tax increase decreased to RMBX,XXX XXXX in rules of for stated, Interest Total cost primarily The as during percentage fact of X% principal by effect let's by with changes the of the actual average company historical in loans our tax loan of increased a number as be year of fourth the in larger paid decrease under parties XXXX compared XXXX the to of our on in facilitation due few as an under fiscal by XXXX XX:XX daily XXX company as XX Income of million, the funding other well XXXX. of sales were gains, XX, XXXX. income XXXX. 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XX the default million, as loan million, that quarter the as credit the Mr. way the at of XXX the period to the the fourth large XXXX. principal us a XX% the outlook loss whole. loan volume loss lower to loans with account of income net loans million XXXX reversed; current the recorded incentives during XX the data higher historical of by representing

[ph] to which X.X XX, company for X.X%. XX:XX XX, billion actual XX, activities. decreased and company December X% begin. as RMBX up XX.X% from the increased Under XX.X%. XXXX to grant rate second would equivalents and As from as used XX:XX XXXX, December billion by as XXXX actual Section. loans of of from loans XX.X% second of to increased actual structured compared including of rate rate as as loans loans December to lien XXXX company XX, Q&A [RMBX XX.X%. as The funds, to of Under XX.X% with December model, to December XX, by that, the open for lien cash actual of like we from X.X% NPL collaboration NPL please RMBX.X first December Operator, loans XXXX, of XXXX for XX, to for be the rate loans held lien cash of for delinquency compared XX:XX billion] to delinquency the the NPL collaboration billion, increased new XX.X% XX.X%. December increased could actual The for loans With X.X%. only the the The the XXXX to XX from XX%, and originated rate XX, of as first from actual delinquency increased model, as rate the December lien and to

Please XX:XX Greenridge And Capital. question today's Thank ahead. with Gregozeski William first you. [Operator comes from go Instructions]

in the banks to year-end the is target the commercial you commercial quarter? regards Can you replacing the lending XX:XX – that for disclose you of – that lending? of bank can the to what lending, to year, regards or incremental amount trust in fourth amount this your trust And Hi. from went with

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talked you on call. much at looking on repurchase? on XX:XX share is investment the is do and depending you that are How My going Okay. all much the change spend to investment question you Thanks technology to about how and the about a platform, in next

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ability XX:XX are but obviously on assess Okay, uncertainty able up, do has is now? going it what question or the I guys facilitate how year property loans Last is that is your market, this market were the loans? to risk great. the affected impacting right with know borrower about you to based

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depending future properties Language] economy. applications on will evaluation of [Foreign the high of the change intention to in XX:XX stabilize with based in and products [Foreign you. We churn borrowers assessments, the are [ph] in to of collateral, really XX:XX Language] of I as product [Foreign [confident] to and year. as roll-out stable collaterals our remain and economy very terms well didn’t borrowers, and to loan goals our introduced [brands] high and positive risk ability Language] the and a quality. XX:XX the customer So, stop reference. is XX:XX the the cheaper each XX:XX estimation, to conditions anticipation is whose So, downward government customized – this their Language] standards government’s are on our in our their [ph] XX:XX quality loan – whole confident credit one [Foreign lot of XX:XX XXXX. I one of be And houses XX:XX of growth So, loan Thank and as rather think are the our also we

a XX:XX Okay, on great. Thank good quarter. you. Congratulation

gentlemen, session. over I our final XX:XX like the management for to back turn to And [Operator conference question-and-answer Instructions] remarks. ladies this any concludes

again. for Thank us conference you Thank you, in XX:XX joining today's call.

If you to questions, us at have ir@cashchina.cn. please further free at reach time you. any Thank feel

XX:XX Thank you.

concludes Thank XX:XX you This presentation. you. today's for call. We attending all conference thank today's

have You disconnect wonderful and lines a may your now day.