300 billion Langfang Bank crisis: net profit drops 70% in two years, cooperation institutions reduced to 3

Recently, a user complained to People’s Daily Online, stating that they borrowed 10,000 yuan through a lending platform partnered with Langfang Bank, with an actual annual interest rate as high as 36%, which also included “dual guarantee” fees. Kaijia Finance’s investigation found that Langfang Bank has experienced a continuous decline in profits and an increase in non-performing loan rates in recent years, and the partnering institutions frequently change, exposing compliance and risk control concerns in its consumer finance business.

On March 19, a netizen complained to People’s Daily Online, reflecting that they signed a 10,000 yuan loan agreement with Langfang Bank on April 13, 2025, with a combined annualized interest rate of 24% from interest plus guarantee fees, and an additional charge of 299 yuan for guarantee consultation service fees for the first and second installments, which they were unwilling to refund after multiple communications.

According to the repayment records uploaded by the netizen, the actual annualized interest rate for this loan from Langfang Bank (which should be the lending platform partnered with Langfang Bank) is about 36%. Among them, the two 299 yuan guarantee consultation service fees were deducted by “Tonglian Payment,” with the payee being “Dingyi Financing Guarantee (Fujian) Co., Ltd.” Kaijia Finance noted that the repayment details show that the first and second installments include guarantee fees and guarantee consultation service fees, which is the “dual guarantee” model previously exposed by the media, raising the actual annual interest rate to 36% from the original 24%.

Business registration information shows that Dingyi Financing Guarantee (Fujian) Co., Ltd. (referred to as “Dingyi Guarantee”) was established on October 12, 2020, with a registered capital of 500 million yuan, legal representative Wang Yong, and shareholders being Fuzhou Lido Information Technology Co., Ltd. (54%) and Shenzhen Xinheng Zhichuang Technology Co., Ltd. (46%).

Data from Qichacha shows that Dingyi Guarantee developed and operated the “Baishunhua” app. According to the introduction, Baishunhua is an app under Dingyi Guarantee that conducts financing guarantee, financing consultation, and other businesses, committed to providing comprehensive financing guarantee services for customers seeking financing. The Xiaomi App Store shows that Dingyi Guarantee has two apps under its name, namely “Baishunhua” and “Xinxiaoniu.”

Public information indicates that Langfang Bank Co., Ltd. was established on December 21, 2000, headquartered in Langfang City, Hebei Province. It is a nationally approved financial institution and regional urban commercial bank with a registered capital of 5.77 billion yuan, subordinate to Tianjin and Shijiazhuang branches and 118 branch offices, achieving cross-regional operations. By the end of 2024, total assets reached 302.837 billion yuan.

On July 21, 2025, Langfang Bank was fined 1.957 million yuan by the Hebei Branch of the People’s Bank of China for “violating financial statistical management regulations; violating account management regulations; violating financial technology management regulations; occupying fiscal deposits or funds; failing to fulfill customer identity verification obligations as required; failing to report large transaction reports or suspicious transaction reports as required; violating relevant management regulations on credit information collection, provision, and inquiry.”

Kaijia Finance noted that as of the time of writing, Langfang Bank had not yet disclosed its 2025 annual report. From 2022 to 2024, the bank’s operating income was 4.963 billion yuan, 4.563 billion yuan, and 3.613 billion yuan respectively; net profits were 803 million yuan, 569 million yuan, and 243 million yuan respectively. Among them, the operating income and net profit for 2024 decreased by 20.82% and 57.24% year-on-year, indicating a significant decline in profitability.

During the same period, the non-performing loan rate of Langfang Bank was on the rise, while the provision coverage ratio was declining. From 2022 to 2024, the non-performing loan rates were 2.4%, 2.03%, and 2.44%, with a drop in 2023, followed by an increase in 2024; during the same period, the provision coverage ratios were 156.4%, 153.19%, and 104.29%.

On September 26, 2025, Langfang Bank disclosed a list of loan business partnering institutions, showing that the bank had a total of 8 consumer finance partners, including WeBank, Sunshine Insurance, Kaixuan Guarantee, JD Small Loan, Zhongshi Guarantee (Huiyihua), and others. On January 7 of this year, Langfang Bank updated the list of consumer finance partners, reducing the partners to 3, namely WeBank, JD Small Loan, and Huizheng Guarantee.

Source: Kaijia Finance

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