CNFinance Holdings Limited (NYSE:CNF) Q4 2022 Earnings Call Transcript

William Gregozeski: Okay. And last question is more just general. Given the current environment, what do you guys see as the biggest risk for the company and biggest opportunity for the current environment?

Qian Jun: Okay. So I think the major challenge to CNFinance is whether we can contain the increase of delinquency ratio given the adjustment — post the adjustment of pandemic prevention and control policies. And that means we have to focus more on the asset quality. So to address this challenge, we’re going to take a couple of measures, including I kind of want to focus more on expanding our businesses in Tier 1 and new Tier 1 cities and just to lower the proportion that we’re doing in Tier 2 and Tier 3 cities. And also, we want to just use technology to refine the whole loan approval process and just to manage risks better. And also, I think the opportunities presented to us, including that the first thing, is how the — how China’s economy is going to pick up, going to recover post the adjustment to the pandemic prevention and control.

And also the second thing is, so after the past 2 years, we have finally seen the trading volume and property price in core areas start to recover. And since the majority of our business was conducted in such regions, and I think that’s another good news to us.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ms. Jane for any closing remarks.

Unidentified Company Representative: Thank you for joining us today. If you have any questions, please feel free to contact us at ir@cashchina.cn. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.