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

Ask AI · How do high-interest-rate complaints reflect compliance concerns?

Recently, a user filed a complaint on People’s Daily Online, saying that they borrowed RMB 10,000 through a loan facilitation platform in cooperation with Langfang Bank. The actual annualized interest rate was as high as 36%, and it also included “Shuangrongdanz” fees. An investigation by Kai Jia Caijing found that in recent years, Langfang Bank’s profitability has continued to decline, its non-performing loan ratio has risen, and its partner institutions have also changed frequently—revealing compliance and risk-control concerns in its consumer finance business.

On March 19, a netizen complained on People’s Daily Online, stating that on April 13, 2025, they signed a RMB 10,000 loan with Langfang Bank. The combined annualized interest rate, including interest and guarantee fees, was 24%. In addition, in the first and second installments, they were each charged an extra RMB 299 for a guarantee consultation service fee, and after multiple rounds of communication, they still refused to refund the charges.

According to the repayment records uploaded by the netizen, for this loan with Langfang Bank (which should be Langfang Bank’s partner loan facilitation platform), the netizen’s actual annualized interest rate was about 36%. Among them, two RMB 299 “Rongdan” consultation service fees were deducted via “Tonglian Payments,” and the payee was “Dingyi Rongdan Guarantee (Fujian) Co., Ltd.” Kai Jia Caijing noted that the repayment details show that in installments 1–2, the amounts include the Rongdan fee and the Rongdan consultation service fee—that is, the “Shuangrongdanz” model previously exposed by the media. Through “Shuangrongdanz,” the original annualized interest rate of 24% was increased to an actual annualized interest rate of 36%.

According to business registration information, Dingyi Rongdan Guarantee (Fujian) Co., Ltd. (abbreviated as “Dingyi Rongdan”) was established on October 12, 2020. Its registered capital is RMB 500 million, the legal representative is Wang Yong, and its shareholders are Fuzhou Liduo Information Technology Co., Ltd. (54%) and Shenzhen Xinhai Zhichuang Technology Co., Ltd. (46%).

Qichacha data shows that Dingyi Rongdan has developed and operates the “Baishunhua” app. According to the description, Baishunhua is an app under Dingyi Rongdan that conducts businesses such as financing guarantee and financing consultation, and is committed to providing comprehensive financing guarantee services for customers who want financing. The Xiaomi App Store shows that there are two apps under Dingyi Rongdan: “Baishunhua” and “Xin Xiaoniu.”

Public information shows that Langfang Bank Co., Ltd. was established on December 21, 2000. Its headquarters are located in Langfang City, Hebei Province. It is a nationally approved statutory financial institution and a regional city commercial bank, with registered capital of RMB 5.77 billion. It has two branches—Tianjin and Shijiazhuang—and 118 branches, and it operates across regions. As of the end of 2024, total assets reached RMB 302.837 billion.

On July 21, 2025, Langfang Bank was fined RMB 1.957 million by the People’s Bank of China, Hebei Branch for: “violating provisions on the administration of financial statistics; violating provisions on account management; violating provisions on financial technology management; occupying or coercing fiscal deposits or funds; failing to perform customer identity identification obligations as required; failing to report large-amount transaction reports or suspicious transaction reports as required; violating relevant administrative provisions concerning the collection, provision, and querying of credit information.”

Kai Jia Caijing noted that as of the time of publication, Langfang Bank had not disclosed its 2025 annual report. From 2022 to 2024, the bank’s operating revenue was RMB 4.963 billion, RMB 4.563 billion, and RMB 3.613 billion, respectively; its net profit was RMB 803 million, RMB 569 million, and RMB 243 million, respectively. Among them, in 2024, operating revenue and net profit fell year over year by 20.82% and 57.24%, respectively, and its profitability showed a significant downward trend.

Meanwhile, Langfang Bank’s non-performing loan ratio was rising, while its provision coverage ratio was falling. From 2022 to 2024, Langfang Bank’s non-performing loan ratio was 2.4%, 2.03%, and 2.44%, respectively. After being reduced in 2023, it increased again in 2024. Over the same period, the provision coverage ratio was 156.4%, 153.19%, and 104.29%, respectively.

On September 26, 2025, Langfang Bank disclosed a list of loan business cooperation institutions. According to the list, the bank had 8 consumer finance cooperation institutions in total, including WeBank, Sunway Insurance, Kaixuan Rongdan, JD Small Loans, Zhongshi Rongdan (Huiyihua), and others. On January 7 of this year, Langfang Bank updated its list of consumer finance cooperation institutions, and the number of cooperation institutions changed to 3: WeBank, JD Small Loans, and Huizheng Rongdan.