CNFinance's management of non-performing loans in 2025 has shown significant results, with disposal recoveries fully covering the principal

According to the Zhitong Finance APP, in the overall favorable environment of "double reduction" in non-performing loans in the banking industry in the first half of 2025, Deep Finance (CNF.US) has achieved a key breakthrough in reducing non-performing loans—successfully curbing the upward trend of non-performing loans through diversified disposal methods such as settlements with borrowers, and the amount recovered from disposals within the year has fully covered the principal of non-performing loans, establishing a solid risk "firewall" for the company's stable operation.

According to the latest data from the Financial Regulatory Administration, as of the end of the second quarter of 2025, the balance of non-performing loans in commercial banks was 3.4 trillion yuan, a decrease of 2.4 billion yuan from the end of the previous quarter; the non-performing loan ratio was 1.49%, down 0.02 percentage points from the end of the previous quarter, indicating a stabilization of the overall financial environment. Wang Jingwu, Vice President of the Industrial and Commercial Bank of China, also stated that as the benefits of stable economic policies continue to be released, the deterioration trend of personal consumer loans will gradually slow down in the future. Against this backdrop, Deep Finance closely adheres to the core principle of "Survival First, Victory First" from the 2025 semi-annual work meeting, deeply binding non-performing loan control with the "123" strategy: on one hand, through refined operations of the loan service platform, continuously optimizing the asset structure, focusing on high-quality real estate mortgage assets in first- and second-tier cities (previous data showed that the proportion of assets in first-tier and new first-tier cities reached 88%), reducing risk exposure from the source; on the other hand, innovating disposal methods, in addition to settling with borrowers, also relying on past accumulated risk control experience and the "Senior - Mezzanine - Junior" partner risk-sharing mechanism to enhance the efficiency of non-performing asset disposal, ultimately achieving full coverage of disposal recoveries against non-performing principal.

As a leading enterprise in the loan service field for small and micro enterprises in China, the effectiveness of Deep Finance's non-performing loan management not only verifies the effectiveness of its risk disposal capabilities but also solidifies its foundation for serving small and micro enterprises. The company stated that it will continue to deepen its financing service capabilities under the premise of prudent risk control, providing more convenient and economical financing solutions for small and micro business owners and individual industrial and commercial households, and promoting its continuous progress on the track of high-quality development