According to recent information, in the positive environment of a "dual decline" in non-performing loans (NPLs) within the banking sector during the first half of 2025, CNFinance Holdings Ltd. (CNF.US) has made significant breakthroughs in managing NPLs. By employing diversified disposal strategies, including settlements with borrowers, the company has successfully curbed the rising trend of NPLs, achieving recovery amounts that fully cover the principal of the non-performing loans within the year, thereby reinforcing its risk "firewall" for stable operations.
Recent data from the financial regulatory authority indicates that at the end of Q2 2025, the balance of commercial bank NPLs stood at 3.4 trillion yuan, a reduction of 2.4 billion yuan from the previous quarter; the NPL ratio was 1.49%, down 0.02 percentage points from the last quarter, marking a stabilization in the overall financial environment. Wang Jingwu, vice president of Industrial and Commercial Bank of China, previously stated that with the continued release of economic stabilization policy dividends, the deterioration trend of personal consumption loans is expected to gradually slow down.
In this context, CNFinance aligns its NPL management with the core principle of "Survival First, Victory First" from its semi-annual work conference for 2025. It has deeply integrated this approach with its "123" strategy: on one hand, by fine-tuning operations on its loan service platform to continuously optimize its asset structure, focusing on high-quality mortgage assets in first- and new-first-tier cities (previous data indicated that assets in first-tier and new-first-tier cities accounted for 88%); on the other hand, by innovating disposal methods, not only settling with borrowers but also leveraging past risk control experiences and a "senior - mezzanine - subordinate" partner risk-sharing mechanism to enhance the efficiency of dealing with non-performing assets, ultimately achieving full recovery of principal from disposals.
As a leading service provider in the field of loans for small and micro enterprises in China, CNFinance's accomplishments in NPL management not only validate the effectiveness of its risk disposal capabilities but also solidify its foundation in serving small and micro enterprises. The company has stated that it will continue to deepen its financing service capabilities with prudent risk management as the premise, providing more convenient and economically viable financing solutions for small and micro enterprise owners and individual business operators, thereby driving its ongoing progress toward high-quality development.