CNFinance Holdings Limited (CNF) 29 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the CNFinance Holdings Limited Third Quarter of 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ms. Jay, Manager of Capital Marketing. ahead. go Please

results welcome will Call. and President, Third Financial Li. the Quarter Jun our results Good CFO, a acting today's to Q&A call, Conference Ms. operating through us In will that, Vice by our Results financial Qian, from we morning, After walk CNFinance's followed have Director Mr. and session.

or result a or law. does undertake as under any not information, uncertainties uncertainties to the in company's update and are other company The Exchange as forward-looking like Further within except filings believes, and company's new expectations on are Act to which this regarding market of conference be and all by forward, that included of management's statements control, forward-looking statements the and Before and similar predict going of from current and can otherwise, it materially or in that risks, factors the other XXXX in as factors, we which as statements. these of of difficult the call performance U.S. or operating known events achievements required anticipates, future Litigation may of results, are Securities statements futures, you These and cause obligation is the Commission. will, estimates, Securities start, terminology with many actual company's as amended the Private to remind relates which based targets, as forward-looking involve statements the Exchange the I forward-looking Reform intends, XXE meaning differ to those would plans, XXXX. Section beyond such U.S. and defined contains current Act outlook identified risks, of any conditions events to Such information unknown expects, statements. Security

Qian. welcome please Mr. Jun Now

taking call. for to join Thank [Interpreted] the you time this conference

Q&A the Financial Operating CNFinance by and Quarter Results of followed session. discuss Third XXXX will and We

During and the company focused XXXX, [indiscernible] the third on quality. asset improving quarter of

year-on-year achieved As indicators. important growth in all

company XX% loans RMB by the of XX The at company's include the achieved quarter, as by million of following. scale. mechanism, the a billion company's increased Furthermore, business control highlights X.X remains risk year-on-year. the and result During a XX% facilitating XXX%. for the recovery effective net income to increased of Involvement year-on-year expanding quarter,

RMBX.X RMBX.X loan During compared to origination improved. significantly refine RMBX.X sales help as of bank was of instalment was of the billion, the volume a trust RMBX.X quarter facilitated, Among second to lending total to representing the derivativity company's pressures. sales year-on-year and was Continuing commercial quarter, our and XXXX. billion a billion partnership. XX% under to partner's the liquidity XX% increase policy, and model loans under our Due surface billion these partners increase has

company accuracy the few adjusted lay average credit distorted were finance able with history.In This third effectively able beginning a and real the a optimizing needs rates, and By the the borrowers customer quarter, the the product-mix lower lower interest to foundation better MSE of good risk product-mix making we owners benefits were to serving in of give improve for factors of company credit quality, inclusive. reduced its the their help historical improve lower the order leveraged borrowers technology the and of and the to continuously has that the assessment portions company. costs than slightly to have sales collaterals. assessment XXXX, the its fully the reforming asset been in in partners has of year. the products products company's quarter of the the of rate financing and interest And to recommend were Optimizing accordingly. During in-store In more payments. exposure

shifted the has company its business to regions. addition, core tactically In

time, of and Management overall tier first is and the in believes China's fluctuating. finance policies facilitated currently estate price [indiscernible] in the the real similar in is reached that still still At loan that inclusive recovery period XX% quarter, to -- is market opportunity same loan believe we China the is the first-tier period. facilitation. of has China's the During new continue and of will market introduce cities

systems match company high-quality emphasize channels, We bring year applications to standardized, to to product-mix, make generative, with refined big-ticket reduce systematized as records. Optimize efficiency. integration continue process the the of needs data objectives transfer quality the development, model to Continue bulk to adopt of end the broaden transition exposure. to good plan this disbursal loan new of collaterals non-performing borrowers products.Continuing more to credit guiding principles and risk the will company continuously to to loans. intelligent, the sales risk in to with third founders credit prospective its approval, company's improve whole the and cash models, total In specific the by in recover reach the a quality as The mind. reduce the capabilities, financing and system, of the promote overall and accelerating launch of and new well compliance order human party goal, before control which the scale, the in platform following improved loans and

to the over Now through hand like walk quarter I'd J to will third the Li Ms. you she financials. call and

Thank you.

be unless be financials. in use will the comparisons as Please note a on stated. over go otherwise will will currency all year-on-year we we made Now RMB that basis

bank credit Net RMBXXX the also million. outstanding the million. XX% million. the mitigation RMBXX The the and from to was compared RMBXX XXXX compared loan was financing credit increased mainly during principal outstanding. RMBXX.X third by decreased are in fees XX% due lower commissions from recommended to RMBXX tied average loan of income to commercial able volume and recommend RMBXXX sales compared Other the XX, who a a to increased sales for sales by to weighted million partners in RMBXX operating the to million third RMBXX Provision billion to RMBXXX to losses performance-based partners more channels million mainly was model an of under to of of interest for partners percentage inability and XXXX, interest and revenue bank RMBXXX had due interest expenses who increased loans and million fees as September as billion to expenses by which million. RMBXXX RMBXX referring the fees at of million. from to to benefits was Employee partners of partnership million Net million fulfill income loans. a due million, Net decrease from by protection company funding million. The the the we're for to fees total interest loans was forfeited obligation have decreased to development. million. as were after an increased company Interest slightly cost their as quarter from RMBXXX the fees collaboration loan million XXXX, RMBX increase quarters, compared payments, commercial was RMBXXX RMBXX expenses as to RMBXX.X RMBXX.X XX% partners the September Total third to as sales rewarded receive partnership million. of RMBX.X under million paid to by from certain cost conditions trust in local by RMBXXX RMBX.X to RMBXX The their to to Interest XX% they decrease XX% RMBXX income was will income recent increase RMBXX sales million to compensation as Net the compared delinquent compared increased increased to provided million of RMBXXX million compared company result as to million. and million. to loans risk decrease referred. rate from increase regulatory from repurchase million their as of of to the partners XX, million fees interest on RMBXXX quarter few to origination last as service of XX% due For Total XXXX.Collaboration bonuses in income XX.X% quarter to RMBXXX million million the RMBXX result due XXXX. costs to and was in

to like Operator, please. Q&A would the we Now session. start

begin now comes The from Gregozeski will question-and-answer session. Greenridge first question of the [Operator Global. We William Instructions]

bit Great to expect the regards where about talk quarter. it a continue lending just been. from? to saw it you if With demand guess, from you that has And trust Can -- quite going the for at I billion, growth came that's you the forward? up RMBX.X where

trusted So loan twofold. of for origination model, and main the [Interpreted] under are increase reasons the the

is well select also, our to customer more was to records. the with and in the in the reason overall as financing to better I our to to been to reasons in the borrower to And the focused as the of have shift broaden chance manage reach allowed new as us we X customers product, X in on well think cities. amount Tier as value higher And year, that business we Tier main since grab large with economy that reach prices. is well. to such the beginning also first the most us decrease of products two the the kind we decided because competitive second credit those better fluctuation cost, uncertainties ticket-size collateral; have one our property as that it helped as the Also, able gave of are the which our

Great. Okay.

have getting up for by as since or do commercial? next we're basis the forecast far XXXX, origination, trust for where to and that close you're a As for any broken year total on looking you guys

on uncertainty set also rather for XXXX. [Interpreted] and the a goal market, So of the year the based have we realistic conservative of current

is XX% loan commercial RMBXX picking bank XX%. with next projected model the to under So origination our under year up loans facilitated for -- billion

Okay.

So roughly this an from flat basis on year? overall

[Interpreted] Yes.

with fall sales to Or – buying with last a of kind partners the briefly sales seeing your the into more -- behind you partners payments? just the And that are is the on in quarter, about flexible -- what partners financially? question be to Okay. health talk position little sales is not can of their more cash back you

[Interpreted] the non-performing to helped our that And their is installment we to we have is help loans. the liquidity reason made the their loosened on So their dispose thing second payments. to first improve that partners sales effort of the terms kind

legal cash. with of to We the rid also have to recover segment the improve sales the made borrowers, efforts proceeding as and non-performing helped as which assets well also our get partners the

There conference are over session. turn concludes to remarks. for no back This the questions like this other to I time. closing would at our Jay Ms. question-and-answer

for us Thank you joining today.

to questions, have please you on contact any you. feel free Thank us If ir.cashchina.cn.

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

now may You disconnect.