CNFinance Plans Significant Adjustment to American Depositary Shares Ratio in 2025

CNFinance Announces ADS Ratio Change

CNFinance Holdings Limited, a prominent home equity loan service provider in China, recently revealed plans to modify the ratio of its American depositary shares (ADS) to its Class A ordinary shares. This change, which will transform the current ratio of 1 ADS to 20 Class A ordinary shares to a new ratio of 1 ADS to 200 Class A ordinary shares, will take effect on or about September 5, 2025.

The shift in the ADS ratio will effectively resemble a one-for-ten reverse ADS split. For stakeholders holding ADS, this means that those who currently possess ten existing ADS will need to surrender them to receive one new ADS following the ratio change. CNFinance aims to file a post-effective amendment to the ADS Registration Statement on Form F-6 with the U.S. Securities and Exchange Commission (SEC) to formalize this alteration,
expected to be put into action when the amendment becomes effective.

The company's designated depositary bank, JPMorgan Chase Bank, N.A., will manage the exchange process for current ADS holders. Notably, the new ADS will continue to trade on the New York Stock Exchange under the ticker symbol "CNF." CNFinance emphasizes that no fractional new ADSs will be issued as a result of the ratio change. Instead, any fractional entitlements will be aggregated and sold by the depositary bank, with the net cash proceeds being distributed to the respective ADS holders after accounting for applicable fees and taxes.

Despite this change, the underlying Class A ordinary shares will not be affected, meaning that there will be no issuance or cancellation of these shares involved in the ratio adjustment. The implications of the new ADS ratio are expected to influence the trading price, which may see proportional increases; however, the company has clarified that it cannot guarantee the ADS trading price will equal or exceed ten times the previous trading price post-ratio change.

About CNFinance Holdings Limited

Founded and headquartered in Guangzhou, CNFinance Holdings Limited is recognized as a leading home equity loan service provider in China’s financial marketplace. The company operates through a network of subsidiaries, connecting borrowers with various funding institutions under a trust lending model as well as through partnerships with commercial banks. Its operational strategy centers around micro- and small-enterprise owners needing financial assistance while owning real estate in major Chinese cities. The loan products developed by CNFinance incorporate risk mitigation mechanisms tailored specifically for both borrowers and their collateral, fortified by a rigorous online and offline assessment process.

Their comprehensive approach underscores a commitment to serving MSE owners effectively while managing potential risks through detailed post-loan management. As such, CNFinance aims to bridge the gap between financing needs and accessible funding sources in an increasingly competitive environment.

For further inquiries regarding the ADS ratio change or other company-related questions, stakeholders can contact CNFinance directly at their official email address: [email protected]