CNFinance Announces Expansion of Share Repurchase Program

Rhea-AI Summary

CNFinance Holdings (NYSE: CNF), a prominent home equity loan service provider in China, has announced an expansion of its share repurchase program to US$30.0 million. This update builds on the USD$20.0 million authorization initially approved in March 2022. The program allows CNFinance to buy back its ordinary shares in the form of American depositary shares (ADSs). The board has extended the program's duration multiple times, most recently adding 24 months from March 2024. As of May 27, 2024, the company has repurchased approximately US$18.5 million worth of ADSs.

Positive

• Share repurchase program increased to US$30.0 million, indicating confidence in the company's financial health.
• Repurchased US$18.5 million of ADSs by May 27, 2024, demonstrating active management in reducing outstanding shares.
• Extended share repurchase program duration by 24 months from March 2024, showing commitment to long-term shareholder value.

Negative

• Initial share repurchase program authorized at US$20.0 million in March 2022 was not fully utilized by March 2023.

News Market Reaction – CNF

+1.33%

+1.33% Session move

In the trading session that priced this news, CNF gained 1.33%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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GUANGZHOU, China, May 27, 2024 /PRNewswire/ -- CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company"), a leading home equity loan service provider in China, today announced its board of directors has increased its share repurchase authorization to US$30.0 million, expanding the USD$20.0 million share repurchase authorization granted in March 2022, commencing on May 27, 2024. In March 2022, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to US$20.0 million of its ordinary shares in the form of American depositary shares ("ADSs") during a period of up to 12 months. In March 2023, the Company's board of directors has authorized to extend such plan for another 12 months commencing on March 16, 2023, and in March 2024, the Company's board of directors has authorized to extend such plan for another 24 months commencing on March 16, 2024. As of May 27, 2024, CNFinance has repurchased approximately US$18.5 million of its ADSs.

About CNFinance Holdings Limited

CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company") is a leading home equity loan service provider in China. CNFinance, through its operating subsidiaries in China, conducts business by connecting demands and supplies through collaborating with sales partners and trust companies as well as commercial banks. Sales partners are responsible for recommending micro- and small-enterprise ("MSE") owners with financing needs to the Company and the Company introduces eligible borrowers to licensed financial institutions with sufficient funding sources including trust companies and commercial banks who will then conduct their own risk assessments and make credit decisions. The Company's primary target borrower segment is MSE owners who own real properties in Tier 1 and Tier 2 cities and other major cities in China. The Company's risk mitigation mechanism is embedded in the design of its loan products, supported by an integrated online and offline process focusing on risks of both borrowers and collateral and further enhanced by effective post-loan management procedures.

For more information, please contact:

CNFinance
E-mail: ir@cashchina.cn

View original content:https://www.prnewswire.com/news-releases/cnfinance-announces-expansion-of-share-repurchase-program-302155963.html

SOURCE CNFinance Holdings Limited

FAQ

What is the new authorization amount for CNFinance's share repurchase program?

The new authorization amount for CNFinance's share repurchase program is US$30.0 million.

When did CNFinance announce the expansion of its share repurchase program?

CNFinance announced the expansion of its share repurchase program on May 27, 2024.

How much has CNFinance repurchased in ADSs as of May 27, 2024?

As of May 27, 2024, CNFinance has repurchased approximately US$18.5 million in ADSs.

When did CNFinance initially authorize the share repurchase program?

CNFinance initially authorized the share repurchase program in March 2022.

How long has the share repurchase program been extended?

The share repurchase program has been extended for another 24 months starting from March 2024.