Half Year 2024 CNFinance Holdings Ltd Earnings Call
Hello, and welcome to the Cm Finance Holdings limited first half of 'twenty 'twenty four financial results Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing Star then zero on your Tullow.
Phone keypad.
Speaker Change: After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Simon ton manager.
Speaker Change: <unk> of the capital markets Department. Please go ahead.
Simon: Thank you Joe good morning, and even well welcome to the Cm Finance first half of FY 'twenty financial results Conference call.
Mr. Tianjin: In today's call, our director and Vice President Mr. Tianjin will walk us through the operating results followed by the financial results from our acting CFO.
Speaker Change: Obviously after that we will have.
Speaker Change: Q&A section.
Speaker Change: Before we started I would like to remind you that this conference call contains forward looking statements within the meaning of section 21 E of the Securities Exchange Act of Nike 34.
And as defined in the U S. Private Securities Litigation Reform Act of 90 95.
Speaker Change: These forward looking statements can be identified by technologies, such as will expects.
Speaker Change: Future income.
Speaker Change: I'll leave estimates targets going forward outlook and domestically.
Speaker Change: Such statements are based upon management's current expectation and current market and operating conditions.
Speaker Change: As to the events that involve known or unknown risks uncertainties and other factors.
Speaker Change: All of which are difficult to predict and many of which are beyond the company's control.
Speaker Change: Which may cause the company's actual results performance.
Speaker Change: Oh 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.
Speaker Change: The company does not take any obligation to update any forward looking statement as a result of new information future events or otherwise except as required under law.
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Speaker Change: Good day, everyone and thank you for joining us today in the first half of 2024 hour focus was squarely on navigating the microeconomic uncertainties by reinforcing our business fundamentals and ensuring the quality of our assets.
Speaker Change: These purion.
Speaker Change: Our originate loans off 6.9 billion asset <unk> 28 for our outstanding loan principal was approximately 16 billion.
Speaker Change: Reflecting a year over year growth of about 10%.
Speaker Change: The mandate is proposed to the potential risks, we continue refining our product approval strategy and strengthen our efforts in collecting and disposing of non performing loans as a result, we maintain our nonperforming loan ratio at approximately one 2% as of June Turkey.
Speaker Change: Four.
Speaker Change: At least the level at the end of last year.
Speaker Change: We recorded and interest income of approximate the.
Speaker Change: $913 million.
Speaker Change: Up 5% compared to the same period last year.
Speaker Change: Why are we benefit from.
Speaker Change: Continued decline in interest rate of our cost of financing.
The increase in average daily loan principle I'll do the trust model leads to a slight year over year rise in interest expense.
Speaker Change: Since the start of the year, we have enhanced our collaboration with third party asset management institutions.
Speaker Change: Particularly in area all overdue long collection.
Speaker Change: This strategic move significantly boosted our recovery.
Although he also lead to a corresponding increase in operating expense due to.
Speaker Change: So lets speak paid to these third party institution.
Speaker Change: Despite these additional costs.
Speaker Change: Our net income from operating activities for the first half of 2024 was.
Speaker Change: Approximately two.
Speaker Change: $220 million.
Speaker Change: <unk> largely flat.
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Peter: We have maintained a prudent approach in provision for impairment with the increase in our outstanding loan principal the provision for credit losses increased to 117 2 million.
Peter: Consequently, our.
Peter: Net profit for the period decreased to $48 million.
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Speaker Change: A key area of focus for the for the half year period include first we continue to drive down our funding cost.
Speaker Change: With market interest rates trending downward.
Speaker Change: We're actively engaged in negotiations with our funding partners to secure more favorable financing trends.
Speaker Change: Leveraging our long term relationships, we achieved a reduction in our average.
Financing rates.
Speaker Change: Approximately 4% year over year.
Speaker Change: The reduction allowed us to cut it off and benefit to our customers with end user interest rate increasing by about 1% point.
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Speaker Change: This quarter, we observed a further easing of liquidity pressure on our sales partners.
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Speaker Change: Sure benefit share risk model has been instrumental in reducing our risk exposure.
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Operator: Hello, and welcome to the CNFinance Holdings Ltd. 1st half of 2024, Bonanza Results Conference Call. All participants will be in listen only mode. Should you need assistance? Please signal a conference specialist by pressing star than zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you press star than one on your telephone keypad. To withdraw your question, please press star than two. Please note this event is being recorded.
Operator: Hello and welcome to the CNFinance Holdings Ltd. First half of 2024, Bonanza Results Conference Call. All participants will be in listen only mode. Should you need assistance? Please signal a conference specialist by pressing star than zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star than one on your telephone keypad. To withdraw your question, please press star than two. Please note this event is being recorded.
Speaker Change: Sure we maintained our focus on asset quality, we concentrate our business effort on the core area. All first here in New Jersey.
Speaker Change: With over 90% of our law is in the area.
Speaker Change: <unk> originated in these regions.
Speaker Change: In addition, we depend will deepen our cooperation with third party asset management companies enhancing our capability in collecting delinquent loans.
Speaker Change: So these efforts we successfully maintained our NPL ratio at one 2% as of June 32024, while achieving a recovery rate of 110% during the period.
Simon Tan: I would now like to turn the conference over to Simon Tan, Manager of the Capital Markets Department. Please go ahead. Thank you, Joe.
Simon Tan: I would now like to turn the conference over to Simon Tan, Manager of the Capital Markets Department. Please go ahead.
Speaker Change: Well, maybe I'll wait.
Simon Tan: Thank you, Joe.
Simon Tan: Good morning, and welcome to the CNFinance 1st half of 2024 Financial Results Conference Call.
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Michelle Jones: Well Michelle.
Simon Tan: In today's call, our director and vice president, Mr. Tian Jun, will walk us through the operating results followed by the financial results from our acting CFO, Ms. Lee. After that, we will have a Q&A section. Before we start it, I would like to remind you that this conference call contains full looking statement within the planning of Section 21B of the Security Exchange Act of 1934. As a man, and as designed in the U.S, private security litigation reform, Act of 1995.
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Simon Tan: These full looking statement can be identified by technologies such as will, expects, and in this case, future intense beliefs, estimates, targets, going forward, outlook, and senior statement. Such statements are based upon management, current expectation, and current market, and operating conditions, and relates to the events that involve knowing or knowing risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond a committee's control. Which may cause the company actual result performance or achievements to defer materially from those in the full looking statement.
Simon Tan: Good morning and welcome to the CNFinance First half of 2024 Financial Results Conference Call.
Michelle Jones: <unk> saw full court.
Speaker Change: As we look ahead, we recognize the ongoing uncertainty in the microeconomic environment and the adjustment in the real estate market. We are committed to adjusting quality pressure off our existing existing law and navigating the uncertainty surrounding new laws.
Simon Tan: In today's call, our director and vice president, Mr. Tian Jun, will walk us through the operating results followed by the financial results from our acting CFO, Ms. Lee. After that, we will have a Q&A section. Before we start it, I would like to remind you that this conference call contains full looking statement within the meaning of Section 21-E of the Security Exchange Act of 1934. As a man and as defined in the U.S, private security litigation reform, Act of 1995.
Simon Tan: These full looking statement can be identified by technologies such as will, expects, and this case, future, intense, tense, beliefs, estimates, target, going forward, outlook, and senior statement. Such statements are based upon management current expectation and current market and operating conditions and relates to the events that involve knowing or knowing risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond a committee's control, which may cause the company actual result performance or achievements to differ materially from those in the full looking statement.
Speaker Change: To that end, we will continue to adjust our strategy strategy, focusing on ensuring asset quality and enhancing operational efficiency. Our goal is to improve both quality and profitability of our business.
Speaker Change: Our substantive master moving forward include.
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Simon Tan: Further information regarding these and other uncertainties or factors is included in the company's filing with the U.S. Security and Exchange Commission. The company does not take any application to update any forward looking statement as a result of new information, future events, or otherwise, except as required on the law.
Simon Tan: Further information regarding these and other risks, uncertainties, or factors, is included in the company's filing with the U.S. Security and Exchange Commission. The company does not take any obligation to update any forward looking statement as a result of new information, future events, or otherwise, except as required by our on-the-law.
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Tian Jun: Now, please welcome Mr. Tian Jun.
Tian Jun: Now, please welcome Mr. Tian Jun. Jun Jun Jun Jun Jun Jun Jun[inaudible] This virus additional cost. Our net income from operating activities for the first half of 2024 was approximately 220 million, remaining largely flat compared to the same period last year. We have maintained a pertinent approach in provision for impairment. We've been raised in our outstanding loan principle. The provision for a credit loss is increased to 172 million. Consequently, our net profit for a period decreased to 48 million.
Speaker Change: Enhancing our focused.
Speaker Change: Asset quality, we will rigorously manage our credit approval standards for new law.
Speaker Change: I'm trying to quality all forward and collateral. Additionally, we will continue to improve the efficiency of our delinquent loan recoveries, particularly through settlement or a settlement recovery.
Speaker Change: We offer to our advantage a fast recovery and high recovery rate.
Speaker Change: We plan to deepen our cooperation with third party asset management company to further leverage this advantage.
Tian Jun: [inaudible][inaudible] This by-bis additional cost. Our net income from operating activities for the first half of 2024 was approximately 220 million, remaining largely flat compared to the same period last year. We have maintained a pertinent approach in provision for impairments. With the increase in our outstanding loan principle, the provision for credit loss is increased to 170 million.
Speaker Change: Proving both recovery speed and recovery rates.
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Speaker Change: Strengthening our product innovation, we will maintain the high quality and is fast advantage of our products, while expanding our product portfolio to adapt to virus scenario.
To support this new business scenarios and enhancing overall efficiency, we will continue to optimize our sales system.
Speaker Change: And adjust our credit approval policy.
Speaker Change: Incorporating additional dimension into our approval models.
Speaker Change: He is a tissue charge uncles would you issue.
Speaker Change: We'll pay down plunge on the Shinbu function Trisha that Gigi great phone called Liberty Ocean functional features from Tianjin a function.
Speaker Change: Further strengthening our compliance efforts, we are committed to continuously improving our risk control and compliance.
Speaker Change: Processed through target actions, which will help us prevent the non market rates cases.
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Speaker Change: I'm the CFO the team you should be in Utah, we need yourself on New York City and somebody on the phone call.
Speaker Change: Now I will hand over to time to our CFO, Amit lead zinc and she will introduce the financial results for the first half of 104 to you.
Speaker Change: Total interest and fee income.
Speaker Change: By four 7% to $926 5 million from 800, and 8-K flood claims finally.
Speaker Change: Total interest and fee expense.
Speaker Change: <unk> expenses increased to 401 7 million from 366.3 million net increase in total interest and fees expenses was mainly due to the increase in average daily balance of <unk>.
Speaker Change: Average borrowings yes.
Speaker Change: Interest and fees income was 524.8.
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Tony: 518 point Tony.
Tony: Yes revenue.
Tony: Commercial Bank partnership model lives saved P 8.4 million as compared to 15 1 million in the same period of 2023.
Tony: In the first half of 2024.
Tony: Okay all right.
Tony: Introduce spine sales partners and a commission.
Tony: Commission paid to SaaS patent Nags head South channel. This has decreased which has ultimately led to an increase in the net revenue.
Dan: Sure Dan.
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Collaboration cost for South panel take rate by 3.9% to 115 nine point kill million from 165.6 million.
Dan: Net interest and fees income after a collaboration costs increased by five 3% to 424 million from <unk> from.
Dan: From 402.7 million S&P event of 2023.
Tian Jun: Consequently, our net profit per period decreased to 48 million. [inaudible] With more interest rates turning downward, we actively engage in negotiation with our funding partners to secure more favorable financing terms. Leveraging our long-term relationships, we achieved a reduction in our average financing rate by approximately 4% year over year. A reduction allowed to cast on benefit to our customers with end-use interest rates decreasing by about 1% point. Second, we strengthen our support for sales partners.
Dan: Provision for credit losses increased to 117.8 million from 129.
Doug: Doug Thank you Ed.
Speaker Change: 2010, you can eat.
Speaker Change: The increase was mainly due to the increase in outstanding loans.
Speaker Change: Other expenses increased by two point children and killed.
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Speaker Change: In the same period of 2023.
Speaker Change: Primarily due to the increase in fees paid to third party asset management come nature can be consumables.
Tian Jun: Our key area of focus for the half-year period includes, first, we continue to drive our funding costs. With more interest rates turning downward, we actively engage in negotiation with our funding partners to secure more favorable financing terms. Leveraging our long-term relationships, we achieved a reduction in our average financing rate by approximately 4% than year over year. The reduction allowed us to cut down benefit to our customers with end-use interest rates decreasing by about 1% point.
Speaker Change: Net income was 48 million as compared to 93.1, many of the same period of 2023.
Speaker Change: As of July 31 page 24, the company had cash and cash equivalents and restricted cash a catch up one point.
Speaker Change: Spending, including one 1 billion from Jack Shang funds as of June 30 declined to 24 waves.
Speaker Change: <unk> can be used to grant new.
Speaker Change: New loans and.
Speaker Change: Activities.
Speaker Change: The delinquency ratio for loans originated by the company increased from.
Speaker Change: 15.5%.
Speaker Change: And the third piece first in 'twenty to 'twenty, 3% to 16.4% as of July 13 2024.
Andy: Yeah, Andy our ratio for loans originated by the company was 1.2% as of June 32024, compared to 1.1% adds up at Sandburg 2030, but plenty of 'twenty three.
Tian Jun: Second, we strengthen our support for sales partners. This cause where we observe a further easing of liquidity pressure on our sales partners. It's more than resuming their reperture of obligation to protect the long-day recommended. This share-benefit, share-risk model has been instrumental in reducing our risk of change. We maintain our focus on asset qualities. We concentrate our business efforts on the coal area of first-tier and new first-tier cities. With over 90% of our long is in the period being originated in these areas.
Tian Jun: This closer, we observe a further easing of liquidity pressure on our sales partners. It's more than resuming their reperture's obligation to protect the long-day recommended. This share-benefit, share-risk model has been instrumental in reducing our risk exposure. Third, the management of the finance industry, the half-year period, and the company continues to focus on the short-term relationship. In the half-year period, over 90% of the new funds are on the market. At the same time, the half-year period is the cooperation between the third and the half-year period.
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Andy: Okay.
Andy: Yes.
Andy: Alright.
Andy: Okay.
Speaker Change: Just one moment please.
Andy: Yes.
Andy: Yeah.
Andy: Okay.
Tian Jun: The cooperation between the third and the half-year period and the half-year period and the half-year period has become a key factor for the company. Through a wide variety of ways, we will focus on the market. We maintain our focus on asset qualities. We concentrate our business efforts on the coal area of first care and new poster cities. With over 90% of our long is in the period being originated in these areas. In addition, we depend, we depend our cooperation with third-party asset management companies, enhancing our profitability in collecting illegal loans.
Andy: Okay.
Andy: Okay. At this time I understand that this will conclude the question and answer session I would like to turn the conference back over to Simon Tan for any closing remarks.
Simon Tan: That's all for today. Thank you for joining us if you have any more questions. Please feel free to reach out.
Simon Tan: Our cash China adopted here. Thank you.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Yes.
Tian Jun: In addition, we depend, we depend our cooperation with third-party asset management companies, enhancing our profitability in collecting deliquant loans. Through these efforts, we successfully maintain our NPL ratio at 1.2% as of June 30, 2024, while treating a recovery rate of 110% during the period. As we look at, we recognize the ongoing uncertainty in a microcosm environment and the adjustment in a real estate market. We are committed to address the quality pressure of our existing long and navigating the uncertainty surrounding new loans. To that end, we will continue to address our strategy focusing on ensuring asset quality and enhancing operational efficiency. Our goal is to improve both quality and profitability of our business.
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Tian Jun: So these efforts, we successfully maintain our NPL ratio at 1.2% as of June 30, 2024, while treating a recovery rate of 110% during the period.
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Tian Jun: As we look at, we recognize the ongoing uncertainty in my quick non-environment and the adjustment in a real estate market. We are committed to address the quality pressure of our existing long and navigating the uncertainty surrounding new loans. To that end, we will continue to adjust our strategy focusing on ensuring asset quality and enhancing operational efficiency. Our goal is to improve both quality and profitability of our business. Our specific measures moving forward include[inaudible] In addition, we will continue to improve the recovery rate of new loans.
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Tian Jun: Our specific master moving forward includes the Gengjiao-Guan-Ju-Si-San-Gi-Liang. First of all, we will continue to provide high-resistant recovery rate. In addition, we will continue to provide high-resistant recovery rate. We have already received a recovery rate from the company. The recovery rate has been relatively fast. The recovery rate has increased a little bit. In the future, we will continue to continue to work with the third-party asset management company. In addition, the recovery rate has also enhanced our focus on asset quality.
Tian Jun: We will rigorously manage our critical proof of standard for new loans, ensuring the quality of forward and goals. Additionally, we will continue to improve the efficiency of our dealing-quins-long recoveries, particularly through settlement recovery. We will offer the advantage of fast recovery and high recovery rate. We plan to deepen our cooperation with third-party asset management company to further leverage this at the Improving both recovery speed and recovery rate. We will maintain the higher quality and fast advantage of our product wireless expanding our product portfolio to adapt to virus scenarios.
Tian Jun: Improving both recovery speed and recovery rate. We will maintain the higher quality and fast advantage of our product wireless expanding our product portfolio to adapt to virus scenarios. The support is new business scenarios and enhancing overall efficiency. We will continue to optimize our self-system and adjust our aquatic approval policy, incorporating additional dimensions into our approval models. In addition, we will continue to improve our risk control and compliance process through target actions, which will help us prevent the non-market risk cases.
Tian Jun: The support is new business scenarios and enhancing overall efficiency. We will continue to optimize our cell system and adjust our aquatic approval policy, incorporating additional dimensions into our approval models. In addition, we will continue to improve our risk control and compliance process through target actions, which will help us prevent the non-market risk cases.
Li Jing: Now I will hand over the time to our CSO Ms. Li Jing and she will introduce the financial result for the first half of 2024 to you. Our total interest and fees income increased by 4.7% to 926.5 million from 884.5 million. Total interest and fees expenses increased to 401.7 million from 366.3 million.
Tian Jun: Our total interest and fees income increased by 4.7% to 926.5 million from 884.5 million. Total interest and fees expenses increased to 401.7 million from 366.3 million. The interest in total interest and fees expenses was made due to the increase in average daily balance of interest bearing borrowings. That interest and fees income was 524.8 million representing an increase of 1.3% from 518.2 million.
Li Jing: The interest in total interest and fees expenses was made due to the interest in average daily balance of interest bearing borrowings. That interest and fees income was 524.8 million, representing an increase of 1.3% from 518.2 million. Next revenue under the commercial band partnership model was 538.4 million as compared to 518.1 million in the same period of 2023. In the first half of 2024, the majority of borrowers were introduced by self-punners and the commission paid to self-punners channels have decreased, which has ultimately led to an increase in the net revenue under the commercial band partnership model.
Tian Jun: Next revenue under the commercial band partnership model was 58.4 million as compared to 15.1 million in the same period of 2023. In the first half of 2024, the majority of borrowers were introduced by self partners and the commission paid to self partner channels have decreased, which has ultimately led to an increase in the net revenue under the commercial band partnership model. The collaboration cost for sales partners decreased by 3.9% to 159.2 million from 165.6 million.
Li Jing: The collaboration cost for sales partners decreased by 3.9% to 159.2 million from 165.6 million. That interest and fees income after collaboration cost increased by 5.3% to 424 million from 200 and 2.7 million in the period of 2023.
Tian Jun: That interest and fees income after collaboration cost increased by 5.3% to 424 million from 200 and 2.7 million in the period of 2023. Provision for credit losses increased to 117.8 million from 129.6 million in the period in 2023. The increase was many due to the increase in outstanding loan principles.
Li Jing: Provision for credit losses increased to 117.8 million from 129.6 million in the period in 2023. The increase was many due to the increase in outstanding loan principles.
Li Jing: Other expenses increased by 62.2% to 97 million from 59.8 million in the period of 2023. Primarily due to the increase in fees paid to a third party asset management committed to collectively consumers.
Tian Jun: Other expenses increased by 62.2% to 97 million from 59.8 million in the period of 2023. Trimarily due to the increase in fees paid to third party assets, management, committee to collect the glee controls.
Tian Jun: Net income was 48 million compared to 93.1 million in the period of 2023. As of June 30, 2024, the company had cash and cash equivalents and restricted cash of 1.6 billion, including 1 billion from structured funds as of June 30, 2024, which could only be used to rent new loans and activities. The delinquency ratio for loans originated by the company increased from 15.5% as of December 31, 2023 to 16.4% as of June 30, 2024. The delinquency ratio for loans originated by the company was 1.2% as of June 30, 2024, compared to 1.1% as of December 30, 2023.
Li Jing: Net income was 48 million compared to 93.1 million in the period of 2023.
Li Jing: As of June 30th, 2024, the company had cash and cash equivalence and restricted cash of 1.6 billion including 1 billion from structured funds as of June 30th, 2024, which could only be used to rent new loans and activities. The Delegancy ratio for loans originated by the company increased from 15.5% as of December 31st, 2023 to 16.4% as of June 30th, 2024. The only ratio for loans originated by the company was 1.2% as of June 30th, 2024, compared to 1.1% as of December 31st, 2023.
Operator: Wait that to wait or like to start the Q&A session. Just one moment please.
Operator: With that, we would like to start the Q&A session. Just one moment please.
Operator: Okay, at this time, I understand that this will conclude the question and answer session.
Operator: Okay, at this time I understand that this will conclude the question and answer session.
Simon Tan: I would like to turn the conference back over to Simon Tan for any closing remarks. That's all for today. Thank you for joining us. If you have any more questions, please feel free to reach us out at www.cashchina.com. Thank you.
Simon Tan: I would like to turn the conference back over to Simon Tan for any closing remarks.
Simon Tan: That's all for today. Thank you for joining us. If you have any more questions, please feel free to reach us out at www.cashchina.com. Thank you.
Operator: The conference has now concluded. Thank you for attending today's presentation.
Operator: The conference has now concluded. Thank you for attending today's presentation.
Operator: You may now disconnect.
Operator: You may now disconnect.