#China #Guangzhou #CNFinance #Home Equity Loans #shareholder meeting

CNFinance Holdings Limited Announces Extraordinary Meeting Results

On December 10, 2025, CNFinance Holdings Limited (NYSE: CNF), a prominent provider of home equity loan services in China, shared pivotal updates from its extraordinary general meeting of shareholders held in Guangzhou, Guangdong Province. The meeting took place at the South Finance Building, aimed at addressing significant corporate changes and ensuring alignment with the evolving market landscape.

Meeting Highlights

The extraordinary general meetingwas convened to propose important resolutions to be voted on by shareholders. The results reflected overwhelming support for the proposed changes, which include:

1. Adoption of a Dual-Class Shareholding Structure:
The first resolution involved transitioning from a single-class to a dual-class shareholding system. The authorized share capital will increase from $380,000 divided into 3.8 billion Ordinary Shares to $2 million divided into 18 billion Class A Ordinary Shares and 2 billion Class B Ordinary Shares. This decision will enhance governance and potentially improve capital accessibility.

- Re-designation of Shares:
- The meeting detailed the reclassification of existing Ordinary Shares into Class A shares, fundamentally restructuring the capital framework of the company.
- The creation of additional Class A and Class B ordinary shares is aimed at accommodating growth objectives and investor interests within the evolving market paradigm.

2. Replacement of Corporate Governance Documents:
A critical aspect of the meeting was a resolution to completely replace the second amended and restated memorandum and articles of association with a new third version. This legal framework aims to reflect the proactive governance needed for the company’s anticipated expansion and operational efficiency.

3. Director Authorization:
The meeting empowered the directors to implement all necessary actions to effect the above amendments, enabling swift execution and operational adaptability in corporate governance.

Future Prospects

The shift to a dual-class share structure marks a significant strategic move for CNFinance, as it aims to fortify its market position amidst increasing competition in the home equity sector. By revising its share capital structure, CNFinance seeks to pave the way for greater attraction of investments, thereby expanding its lending capabilities and services tailored specifically to micro- and small-enterprise (MSE) owners across major cities in China.

The strategic plan reflects an understanding of the importance of investor confidence and aimed to enhance engagement through a more favorable governance structure. The management is optimistic about utilizing the newly structured shares to generate more funding and secure partnerships beneficial in the long term.

Company Overview

CNFinance has established itself as a leading home equity loan service provider, predominantly focusing on connecting borrowers with funding sources through various partnerships including trust companies and commercial banks. Its primary target audience consists of MSE owners who possess real estate in China’s tier-one and tier-two cities. With an integrated strategy that blends online and offline processes, CNFinance emphasizes risk assessment, collateral management, and effective post-loan procedures to maintain robust loan performance and secure borrower trust.

Closing Statements

The results of the extraordinary general meeting signal CNFinance's commitment to adapt and become a more formidable competitor in the financial services sector. With new governance structures in place, the company is well-positioned to navigate future challenges and leverage growth opportunities in the financial landscape of China. Moving forward, this restructuring is likely to lead to a more resilient organization, able to meet the increasing demands of its customers while achieving its strategic business objectives.

Furthermore, the company remains vigilant in a fluctuating economy while maintaining an effective risk management system, crucial for sustaining growth and maintaining a healthy financial profile.