Huaxing Capital Holdings (01911) plans to spend about 308 million yuan to acquire two non-performing asset portfolios

According to the Zhitong Finance App, Huaxing Capital Holdings (01911) announced that on December 31, 2025 (after the trading period), Lishui Langxing's own capital investment partnership (limited partnership) (wholly-owned by the group) plans to acquire non-performing asset portfolio I and non-performing asset portfolio II from Fuzhou Qifu Finance Guarantee Co., Ltd. and Fuzhou Qifu Network Microfinance Co., Ltd., respectively, at a consideration of approximately RMB 277.1 million and RMB 312 million respectively.

The non-performing asset portfolio I to be transferred under the Transfer Agreement I includes a portfolio of bad personal consumption debts owed to Seller I. As of December 1, 2025, the total outstanding principal balance of these debts was approximately RMB 6.677 billion (excluding accrued interest and penalty interest). All of the debts in this portfolio are borne by individual debtors, and the average maturity period is 854 days. Of these, about 20% of the debt overdue for 1 to 2 years is about 20%, and none of the debts involved in this portfolio are secured.

The non-performing asset portfolio II to be transferred under the Transfer Agreement II includes a portfolio of bad personal consumption debts owed to Seller II. As of December 1, 2025, the total outstanding principal balance of these debts was approximately RMB 752 million (excluding accrued interest and penalty interest). All of the debts in this portfolio are borne by individual debtors, and the average maturity period is 439 days. Of these, about 38% of the debt overdue for 1 to 2 years is about 38%, and none of the debts involved in this portfolio are secured.

This acquisition provides a good opportunity for the Group. As the market continues to recover, the Group expects related debt repayments to improve over time, and the Group is confident that a significant portion of the debt can be recovered over time. It is expected that this move will bring a considerable return on investment to the Group. The company believes that this acquisition will (i) expand the scope of the Group's own investment; (ii) enhance investment income and create value for shareholders, as the recovery value over time may exceed the purchase price paid by the Group; and (iii) diversify the Group's revenue sources by increasing credit-related assets. It is expected that the asset package will continue to bring revenue and increase cash flow to the Group in the future.