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CNFinance Holdings Limited Responds to NYSE Notification

On April 18, 2025, CNFinance Holdings Limited (NYSE: CNF), a prominent home equity loan service provider in China, announced receipt of a notification from the New York Stock Exchange (NYSE). The letter, dated April 7, 2025, highlighted CNFinance's non-compliance with certain standards due to the trading price of its American depositary shares (ADSs). This notification, while significant, does not have an immediate impact on the company's ADSs, which will continue to be listed and actively traded on the NYSE.

The NYSE communicates its compliance requirements under specific guidelines, stating that if the average closing price of an organization's stock falls below $1.00 over a consecutive 30-day trading period, it is considered non-compliant. CNFinance has thus been given a six-month 'Cure Period' to remedy this situation by ensuring that the trading price of its ADS remains above the $1.00 mark. This target can be achieved if the closing price reaches $1.00 or higher on the last trading day of any month within the Cure Period, alongside an average closing price of at least $1.00 across that same timeframe.

Failure to meet these criteria by the end of the Cure Period could trigger the NYSE's procedures for suspension and potential delisting of CNFinance’s ADSs. In light of this situation, CNFinance is committed to closely monitoring market conditions and is actively considering various strategies to improve its stock price.

Additionally, CNFinance reassured stakeholders that this notification does not disrupt its core business operations, nor does it interfere with the reporting obligations set forth by the U.S. Securities and Exchange Commission (SEC) or any existing contractual commitments.

Overview of CNFinance Holdings Limited

CNFinance operates as a leading provider of home equity loan services in China, focusing on connecting borrowers with suitable financing options through collaborations with various financial institutions. The company primarily assists micro- and small-enterprise (MSE) owners, particularly those in Tier 1 and Tier 2 cities, in securing funding against their real estate assets.

The operational model of CNFinance involves engaging sales partners and commercial banks to streamline the loan application and approval process. Sales partners, alongside local channel partners, play a critical role in identifying potential borrowers within their communities, thereby ensuring that financing is directed toward those who are most in need. Once potential borrowers are identified, CNFinance introduces them to licensed financial entities, which handle the credit assessment and decision-making processes independently.

Furthermore, the company has implemented a structured risk mitigation strategy within its loan products, promoting an integrated online and offline approach that emphasizes thorough borrower scrutiny and collateral evaluation. This comprehensive method, combined with effective post-loan management practices, aims to safeguard both the lender's and the borrower's interests.

CNFinance remains resolute in its intention to rectify the trading price deficiency within the stipulated timeframe. The company is also expected to inform the NYSE of its intent to address this compliance issue, demonstrating a proactive stance in maintaining its standing in the financial markets.

As CNFinance navigates through this challenge, the company’s stakeholders are encouraged to stay informed about related developments and any further measures the company may undertake to restore compliance with NYSE regulations.