CNFinance clarifies brand confusion amid unauthorized use

Published 19/03/2025, 13:58
CNFinance clarifies brand confusion amid unauthorized use

GUANGZHOU, China - CNFinance Holdings Limited (NYSE: CNF), a prominent provider of home equity loan services in China currently trading at $0.85 per share with a market capitalization of $58.6 million, has issued a statement to clarify confusion in the market regarding the use of the name "Fanhua." The company has noted that entities using the name "Fanhua" are not affiliated with CNFinance, nor is there any operational relationship between them. According to InvestingPro analysis, CNF appears undervalued based on its Fair Value estimate, with multiple indicators suggesting potential upside.

The clarification comes after the company’s name change in November 2024, from "CNFinance Holdings Limited" to "CNFinance Holdings Limited," with a different Chinese name. CNFinance has warned that any misuse or misrepresentation of its name, logo, trademark, or brand that falsely associates it with "Fanhua" could be against the law. The company has emphasized its right to pursue legal action, including civil lawsuits and criminal prosecution, against any unauthorized use of its brand. Despite recent market challenges, with the stock down over 60% in the past year, the company maintains strong financial health with a current ratio of 10.18, indicating robust liquidity.

CNFinance connects borrowers with financial institutions, such as trust companies and commercial banks, through its subsidiaries in China. The company operates by collaborating with sales partners and local channel partners who recommend micro- and small-enterprise (MSE) owners with financing needs. These financial institutions then conduct risk assessments and make credit decisions. CNFinance primarily targets MSE owners who own real properties in Tier 1 and Tier 2 cities and other major cities in China. To mitigate risks, CNFinance has an integrated online and offline process focusing on the risks associated with both borrowers and collateral, which is further strengthened by effective post-loan management procedures.

This announcement is based on a press release statement and aims to ensure that CNFinance’s clients and the public are correctly informed about the company’s brand and affiliations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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