CNFinance Holdings Limited (NYSE: CNF) held an extraordinary general meeting in Guangzhou on December 10, 2025, at 10:00 AM Hong Kong time, and approved a dual‑class share structure that will replace the company’s existing ordinary‑share regime.
The new structure authorizes 18 billion Class A ordinary shares and 2 billion Class B ordinary shares, bringing the total authorized share capital to 20 billion shares. Existing issued ordinary shares (1,559,576,960) and unissued ordinary shares (2,240,423,040) were re‑designated as Class A shares, while 14.2 billion new Class A shares and 2 billion new Class B shares were authorized. Class B shares receive enhanced voting rights, concentrating control in the hands of insiders.
The meeting also approved a third‑amended and restated memorandum and articles of association and authorized the board to take any necessary actions to implement the changes. These governance updates are intended to streamline decision‑making and support CNFinance’s turnaround strategy amid ongoing financial distress and a recent NYSE delisting notice.
CNFinance’s financial performance in the first half of 2025 underscored the urgency of the governance shift. Net income fell from RMB 47.9 million in H1 2024 to a net loss of RMB 40.4 million in H1 2025, while interest and fee income dropped 55.1% to RMB 415.7 million. The company’s non‑performing‑loan ratio rose to 16.9% from 8.5%, and the delinquency ratio climbed to 46.0% from 29.7%, reflecting deteriorating asset quality.
The dual‑class structure is a strategic tool to consolidate voting power, enabling the management team to execute a focused turnaround plan without prolonged shareholder opposition. By tightening control, CNFinance aims to accelerate capital‑raising efforts, streamline governance, and implement its pivot toward portfolio quality management in its home‑equity loan business.
CNFinance had previously faced a NYSE non‑compliance notice in April 2025 for trading below the $1.00 minimum price, but it regained compliance in October 2025 after an ADS ratio change. The company’s pivot to stricter loan origination standards and a focus on existing portfolio quality aligns with the governance changes, positioning it to address the high NPL and delinquency rates that have pressured its earnings.
The adoption of a dual‑class structure will likely affect minority shareholders by reducing their voting influence, but it also signals a commitment to decisive governance that could improve operational efficiency and investor confidence as CNFinance seeks to stabilize its balance sheet and pursue future capital‑raising initiatives.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.