CNFinance Holdings Limited Announces Receipt of NYSE Notification Regarding ADS Trading Price Requirement

Rhea-AI Summary

CNFinance Holdings (NYSE: CNF), a Chinese home equity loan service provider, has received notification from the NYSE on April 7, 2025, regarding non-compliance with trading price requirements. The issue stems from the company's American depositary shares (ADSs) trading below US$1.00 over a consecutive 30-day period.

The company has a six-month cure period to regain compliance by achieving both a closing price and 30-day average closing price of at least US$1.00 per ADS. If CNFinance fails to meet these requirements by the deadline, the NYSE will initiate suspension and delisting procedures. The notification does not immediately impact the ADSs listing status or affect the company's business operations, SEC reporting requirements, or contractual obligations.

Positive

• Company maintains NYSE listing during 6-month cure period
• Business operations and SEC reporting remain unaffected

Negative

• Trading price fell below NYSE minimum requirement of US$1.00
• Risk of potential NYSE delisting if compliance not achieved within 6 months
• Stock price decline indicates negative market sentiment

Insights

Financial Compliance Expert

NYSE warns CNFinance of delisting risk due to sub-$1 share price; company has six months to regain compliance.

CNFinance has received a non-compliance notification from the NYSE regarding its ADS trading price falling below the required $1.00 threshold. This notification triggers a six-month cure period during which the company must regain compliance or face potential delisting procedures.

The immediate implications for shareholders are , as the notification has no immediate impact on the company's listing status. CNFinance continues to trade on the NYSE and maintains its SEC reporting obligations while it works toward a resolution.

To regain compliance, CNFinance must achieve both a closing price of at least $1.00 per ADS on the last trading day of any calendar month during the cure period and an average closing price of at least $1.00 over the 30 trading days ending on that date. The cure period extends approximately to early October 2025.

The company has several potential remedies to address this situation:

• Implementing a reverse stock split to mechanically increase the ADS price
• Improving fundamental performance to attract investor interest
• Considering share repurchase programs to potentially support the share price

This type of notification is relatively common for smaller-cap companies trading near the $1.00 threshold. While concerning, it represents a technical compliance issue rather than an immediate crisis. However, investors should monitor the situation closely, as failure to regain compliance could eventually lead to reduced liquidity and market access if delisting occurs.

The current share price of $0.704 would need to appreciate by approximately 42% to reach compliance, presenting a significant but not insurmountable challenge given the six-month timeframe.

GUANGZHOU, China, April 18, 2025 /PRNewswire/ -- CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company"), a leading home equity loan service provider in China, today announced that it has received a letter from the New York Stock Exchange (the "NYSE") dated April 7, 2025, notifying the Company that it is below compliance standards due to the trading price of CNFinance's American depositary shares (the "ADSs"). The notice has no immediate impact on the listing of the Company's ADSs, which will continue to be listed and traded on the NYSE, subject to the Company's compliance with other listing standards and other rights of the NYSE to delist the ADSs. The NYSE notification does not affect the Company's business operations, its U.S. Securities and Exchange Commission reporting requirements, or contractual obligations.

Pursuant to Section 802.01C of the NYSE Listed Company Manual, a company will be considered to be below compliance standards if the average closing price of its security as reported on the consolidated tape is less than US$1.00 over a consecutive 30 trading-day period. Once notified by the NYSE, the Company must bring its security price and average security price back above US$1.00 by six months (the "Cure Period") following receipt of the notification. The Company can regain compliance at any time during the Cure Period if on the last trading day of any calendar month during the Cure Period the Company's ADSs have a closing price of at least US$1.00 per ADS and an average closing price of at least US$1.00 per ADS over the 30 trading-day period ending on the last trading day of that month. In the event that at the expiration of the Cure Period, both a US$1.00 per ADS closing price on the last trading day of the Cure Period and a US$1.00 per ADS average closing price over the 30 trading-day period ending on the last trading day of the Cure Period are not attained, the NYSE will commence suspension and delisting procedures.

To address this issue, CNFinance intends to monitor the market conditions of its listed ADSs and is considering its options. As required by the NYSE Listed Company Manual, the Company expects to notify the NYSE of its intent to cure its ADS trading price deficiency within the applicable time period required by the NYSE.

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 under the trust lending model, and sales partners, local channel partners and commercial banks under the commercial bank partnership model. Sales partners and local channel 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.

View original content:https://www.prnewswire.com/news-releases/cnfinance-holdings-limited-announces-receipt-of-nyse-notification-regarding-ads-trading-price-requirement-302432454.html

SOURCE CNFinance Holdings Limited

FAQ

What are the requirements for CNFinance to maintain NYSE listing compliance?

CNFinance must achieve both a closing price of US$1.00 per ADS and a 30-day average closing price of US$1.00 per ADS during the six-month cure period.

What happens if CNFinance (CNF) fails to meet NYSE price requirements by October 2025?

If CNFinance fails to meet the US$1.00 price requirements by the end of the cure period, the NYSE will commence suspension and delisting procedures.

Does the NYSE notification affect CNFinance's current business operations?

No, the NYSE notification does not affect CNFinance's business operations, SEC reporting requirements, or contractual obligations.

When did CNFinance receive the NYSE non-compliance notice?

CNFinance received the NYSE non-compliance notice on April 7, 2025.