CNFinance Holdings Limited (NYSE:CNF) Q2 2020 Earnings Conference Call - Final Transcript
Aug 24, 2020 • 08:00 am ET
Good morning and evening, and welcome to the CNFinance 2Q 2020 financial results conference call and webcast. [Operator Instructions] Please note, this event is being recorded.
I now would like to turn the conference over to Jane [Phonetic]. Please go ahead.
Good morning and good evening, and welcome to CNFinance second quarter and first half of 2020 financial results conference call. Before this call, our financial results has been distributed through PR Newswire and CNFinance official website.
In today's call, our CEO, Mr. Zhai, will walk us through the operating results, followed by the financial results from our CFO, Mr. Li. After that, we will have a Q&A session.
Before we start, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminologies such as will, expects, anticipates, future, intends, plans, believes, estimates, targets, going forward, outlook and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and related to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors, is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
Now, please welcome our CEO, Mr. Zhai.
[Foreign Speech] Thank you, host, and thank you for taking the time to join this conference call.
During today's call, I would like to discuss the business operations of CNF in the second quarter of 2020. We will also share with you the opportunities brought up during the COVID-19 recovery, and the corresponding decisions made by the company. After all that, I will take your questions with our CFO.
In the second quarter of 2020, as China's economy recovered from COVID-19, our major operational and financial indicators have improved as compared to the first quarter. Loan origination volume this quarter increased by 51% to RMB1.9 billion. We recorded a provision for credit losses of RMB57 million in accordance with U.S. GAAP. As a result, we were able to turn first quarters' loss into profits, with a net income of RMB25 million. We also maintained a recovery rate of 103% for NPL disposal. By the end of this quarter, the total number of client sales partners has reached 1,500; 840 of which have facilitated loans.
As our discussion in last quarter, the company implemented multiple measures immediately after the outbreak of COVID-19. First, to ensure the company's operations to the greatest extent, we